Question

A partial listing of costs incurred at Taz Corporation during March appears below:

Direct materials	$	171,000
Utilities, factory	$	10,000
Sales commissions	$	69,000
Factory supervisor salary		$32,000
Administrative salaries	$	99,000
Indirect materials	$	32,000
Advertising	$	85,000
Depreciation of production equipment	$	28,000
Direct labor	$	124,000
Depreciation of administrative equipment	$	49,000

Required:

What is the total amount of period cost listed above?

Answer 1

Period Cost:- These Cost are related to a specific period and those cost whose are not included in product Cost are called Period Cost. But these are not directly related to the production of Goods or services.

Calculations for the Total Amount of Period Cost:-

Period Cost:-

Description	Amount
Sales Commissions	$69,000
Administrative Salaries	99,000
Advertising	85,000
Depreciation of Administrative Equipment	49,000
Total Period Cost	$302,000

So the Amount of the Total Period Cost is $302,000.