Question

A review of Plunkett Corporation's accounting records for last year disclosed the following selected information. Variable Costs Direct materials used $ 56,000 Direct labor $179,000 Manufacturing overhead $154,000 Selling costs $108,400 Fixed costs Manufacturing overhead $267,000 Selling costs $121,000 Administrative costs $235,900 What were Plunkett's product costs and period costs for last year?

Answer 1

Answer:

$656,000 and  $465,300

Explanation:

The computation of the product cost is shown below:

= Direct materials used + Direct labor + variable manufacturing overhead  + fixed manufacturing overhead

= $56,000 + $179.000 + $154,000 + $267,000

= $656,000

The computation of the period cost is shown below:

= Variable selling cost + fixed selling cost +   Administrative costs

= $108,400 + $121,000 + $235,900

= $465,300