Question

X Company has the following information for last year:

Raw Material Purchase	$ 400,000		Indirect Factory Labor	$ 65,000
Direct Labor	$ 150,000		Administrative Salaries	$ 142,000
Depreciation on Factory Equipment	$ 45,000		Sales Office Salaries	$ 100,000
Depreciation on Factory Building	$ 70,000		Beginning Balance, Raw Material	$ 150,000
Depreciation on Office Building	$ 35,000		Beginning Balance, WIP	$ 200,000
Factory insurance	$ 55,000		Beginning Balance, Finished Goods	$ 79,000
Property taxes on Factory	$ 22,000		Ending Balance, Raw Materials	$ 52,000
Property taxes on Office	$ 20,000		Ending Balance, WIP	$ 130,000
Utilities for Factory	$ 35,000		Ending Balance, Finished Goods	$ 85,000
Utilities for Office	$ 1,500		Advertising Expense	$ 83,000

X completed 300000 units which were sold at a price of $10.00. X paid a sales commission of 4.00% of sales.

Calculate Total Period Cost:  

Answer 1

Period cost is basically mean cost except cost of goods manufactured.Example- Selling ,Administrative,Marketing cost.Not part of inventory cost.