which are product costs and which are period costs? C) Marquess Corporation has
ID: 2591337 • Letter: W
Question
which are product costs and which are period costs?
C) Marquess Corporation has provided the following partial listing of costs incurre during May: [10 points] Marketing salaries Property taxes, factory Administrative travel Sales commissions Indirect labor Direct materials Advertising Depreciation of production equipment Direct labor $ 39,000 $ 8,000 $ 102,000 $ 73,000 $ 31,000 S 197,000 S 145,000 S 39,000 $ 78,000 Required a. What is the total amount of product cost listed above? Show your work. b. What is the total amount of period cost listed above? Show your work.Explanation / Answer
Answer: Product costs contains resources directly used in manufacturing the product.
Under it comes Direct material, direct labour and manufacturing overhead
Here, under product cost will come
Direct labour $78000
Direct material $197000
Manufacturing overhead under product cost will contain
Property taxes, factory $8000
Indirect labour $31000
Depreciation of production equipment $39000
Total product costs $353000
Period costs : other than product costs. it is not related to manufcturing of the product and are annual costs which occur irrelevant of the production
Marketing salaries $39000
Administrative travel $102000
Sales commissions $73000
Advertising $145000
Total period costs $359000
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