Question

Last year, Buckner & Jones Company incurred the following costs: Direct materials $42,000 Direct labor 63,000 Manufacturing overhead 94,500 Selling expenses 25,200 Administrative expenses 23,100 Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were zero. The total period expense was: a.$250,000. b.$24,000. c.$190,000. d.$48,300.

Answer 1

Answer:

Option (D) is correct.

Explanation:

Given that,

Direct materials = $42,000

Direct labor = 63,000

Manufacturing overhead = 94,500

Selling expenses = 25,200

Administrative expenses = 23,100

Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each.

Total period expense:

= Selling expenses + Administrative expenses

= $25,200 + $23,100

= $48,300

Therefore, the total period expense was $48,300.