Question

Novak Express reports the following costs and expenses in June 2017 for its delivery service. Indirect...

Novak Express reports the following costs and expenses in June 2017 for its delivery service.

Indirect materials $7,000 Drivers’ salaries $16,900
Depreciation on delivery equipment 12,000 Advertising 5,100
Dispatcher’s salary 5,400 Delivery equipment repairs 450
Property taxes on office building 930 Office supplies 660
CEO’s salary 12,500 Office utilities 1,050
Gas and oil for delivery trucks 2,900 Repairs on office equipment 270


Determine the total amount of (a) delivery service (product) costs and (b) period costs.

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Answer #1
Delivery service product cost (7000+12000+5400+2900+16900+450) 44650
Period cost (930+12,500+5100+660+1050+270) 20510

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