Question

4.Which of the following are period costs? a. Raw materials b. Direct materials and direct labor c. Direct labor and manufacturing overhead d. Selling expenses 5.Current information for the Stellar Corporation follows: Beginning work in process inventory $17,900 Ending work in process inventory 19,300 Direct materials 147,000 Direct labor 85,000 Total factory overhead 63,100 Stellar Corporation's Cost of Goods Manufactured for the year is: a. $293,700. b. $313,000. c. $295,100. d. $275,800. 6. Using the information below, calculate cost of goods sold for the period: Sales revenues for the period $ 1,304,000 Operating expenses for the period 239,000 Finished Goods Inventory, January 1 36,000 Finished Goods Inventory, December 31 41,000 Cost of goods manufactured for the period 540,000 a. $448,000. b. $774,000. c. $535,000. d. $769,000.

Can someone please help me with questions 4-6? Thanks

Answer 1

4

Selling expenses are period costs.

Selling expenses are expensed in the period they are incurred and thus are period costs.

Option D is correct

5
Direct materials	147000
Direct labor	85000
Total factory overhead	63100
Total manufacturing costs	295100
Add: Beginning work in process inventory	17900
	313000
Less: Ending work in process inventory	19300
Cost of goods manufactured	293700
Option A is correct
6
Finished goods inventory, January 1	36000
Add: Cost of goods manufactured for the period	540000
Cost of goods available for sale	576000
Less: Finished goods inventory, December 31	41000
Cost of goods sold	535000
Option C is correct