Question

8 Particular patient A particular pe A particular yacht Cost of a measles vaccine adminstered at an outpatient clinic at a hospital Cost of electronic navigation syatem installed in a yacht manufacturer 10 Wood used to a home 1 syatem A particular home Required: icate whether the cost is direct or indirect with respect to the cost object For each item above, indicate whether the cost is listed next to it. Put your answers in the column provided. olumn provided. (5 marks) 118ting of costs incurred at Jala Enterprise during January appears below: C. A partial listing of costs incurred at Jal Direct materials Utilities, factory Sales commissions Administrative salaries Indirect labor Advertising Depreciation of production equipment Direct labor Depreciation of administrative equipment Director's remuneration RM 107,000 11,000 35,000 115,000 29,000 148,000 46,000 109,000 39,000 140,000 Required: a) Compute the total amount of product cost listed above. (3 marks) b) Determine the total amount of period cost listed above. (3 marks)

Answer 1

	product cost is the cost incurred upto to the point of manufacturing
	a product
a.	Product cost
	Property taxes, factory					11,000
	Indirect labor					29,000
	Direct Materials					107,000
	Depreciation of production equipment					46,000
	Direct Labor					109,000
	total Product cost					302,000
b.	Total period cost
	Depreciation of administrative equipment					39,000
	Administrative Salaries					115,000
	Sales commission					35,000
	Advertising					148,000
	Total period cost					337,000