The giga Company produces table computers. The following information is provided
ID: 2459466 • Letter: T
Question
The giga Company produces table computers. The following information is provided.
a. Material used $ 216,000
B. advertising $40,000
c. Insurance Factory $20,000
d. Administrative salaries $50,000
e. Property taxes factory $12,000
F. Utilities, administrative building $22,000
g. Factory labor $80,000
h. Sales commissions $56,000
I. Factory supervisor's salary $60,000
J. Research and development $18,000
K. Depreciation factory $12,000
L. Depreciation office $8,000
m. Indirect materials $14,000
Classify each company's cost as a period cost ( general, selling, and administrative cost) or as a direct or indirect product cost. Enter the dollar amount of the cost in the appropriate column. After entering all amounts, calculate the total general, selling, and administrative cost, the total direct product cost, and the total indirect product cost.
Explanation / Answer
Period cost
Direct
Indirect cost
a)Materials used
$216,000
b) advertising
$40,000
c. Insurance Factory
$20,000
d. Administrative salaries
$50,000
e. Property taxes factory
12,000
F. Utilities, administrative building
22,000
g. Factory labor
$80,000
h. Sales commissions
56,000
I. Factory supervisor's salary
60,000
J. Research and development
18,000
K. Depreciation factory
12,000
L. Depreciation office
8,000
m. Indirect materials
14,000
total
$194,000
$216,000
$198,000
Period cost
Direct
Indirect cost
a)Materials used
$216,000
b) advertising
$40,000
c. Insurance Factory
$20,000
d. Administrative salaries
$50,000
e. Property taxes factory
12,000
F. Utilities, administrative building
22,000
g. Factory labor
$80,000
h. Sales commissions
56,000
I. Factory supervisor's salary
60,000
J. Research and development
18,000
K. Depreciation factory
12,000
L. Depreciation office
8,000
m. Indirect materials
14,000
total
$194,000
$216,000
$198,000
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