Question

ABC Company recorded the following information related to their
inventory accounts for 2019:

                  January 1, 2019        December 31, 2019
  Direct materials     50,000                 37,000
  Work in process      38,000                 41,000
  Finished goods       22,000                 35,000

ABC Company's accounting records for 2019 indicated the following
costs had been incurred:

  Direct materials purchased ................... $124,000
  Depreciation, factory equipment ..............   30,000
  Direct labor .................................   97,000
  Utilities.....................................   18,000
  Sales commissions.............................   65,000
  Indirect materials............................   25,000
  Depreciation, office equipment ...............   17,000
  Production supervisor's salary ...............   76,000
  Advertising...................................   61,000

60% of the utilities relate to the factory while 40% of the
utilities relate to the general office building.

Calculate the total period costs incurred during 2019.

Answer 1

Total period cost=$150,200

Working

Total period cost
General Utilities	$        7,200.00
Depreciation, office equipment	$      17,000.00
Sales commission	$      65,000.00
Advertising	$      61,000.00
Total period cost	$ 150,200.00

Period cost are basically all general, selling and administrative expenses.