A partial listing of costs incurred at Boylen Corporation during March appears below:    Direct materials$181,000Utilities, factory$10,000Sales commissions$69,000Administrative salaries$99,000Indirect labor$32,000Advertising$75,000Depreciation of production equipment$28,000Direct labor$120,000Depreciation of administrative equipment$49,000 Required:a. What is the total amount of product cost listed above? Show your work.b. What is the total amount of period cost listed above? Show your work.

What will be an ideal response?


a.

Product costs consist of direct materials, direct labor, and manufacturing overhead:

 


      
Direct materials   $181,000
Direct labor    120,000
Manufacturing overhead:     
Utilities, factory$10,000   
Indirect labor 32,000   
Depreciation of production equipment 28,000  70,000
Total product cost   $371,000
 

b. 

 

Period costs consist of all costs other than product costs:

 


   
Sales commissions$69,000
Administrative salaries 99,000
Advertising 75,000
Depreciation of administrative equipment 49,000
Total period cost$292,000

Business

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