Answer:
1. Total Amount of Product Costs $296,050
2. Total Amount of Period Costs Incurred $141,050
3. Total Amount of Product Costs $330,300
4. Total Amount of Period Costs $135,300
Explanation:
The computation is shown below:
1. For total product cost
Total Amount of Product Costs = Units × (Direct Material Per Unit + Direct Labor Per Unit + Variable Manufacturing Overhead + Fixed Manufacturing Overhead Per Unit)
= 15,500 units × ($7.40 + $4.40 + $1.90 + $5.40)
= $296,050
2. For total period cost
Total Amount of Period Costs = Units × (Fixed Selling Expense Per Unit + Fixed Administrative Expense Per Unit + Sales Commissions Per Unit + Variable Administrative Expense Per Unit)
= 15,500 units × ($3.90 + $2.90 + $1.40 + $.90)
= $141,050
3. For total amount of product cost incurred
Direct Material (18,000 units × $7.40) $133,200
Direct Labor (18,000 units × $4.40) $79,200
Variable Manufacturing Overhead (18,000 units × $1.90) $34,200
Fixed Manufacturing Overhead (15,500 units × $5.40) $83,700
Total Product Costs $330,300
4. For total amount of period cost incurred
Fixed Selling Expense (15,500 units × $3.90) $60,450
Fixed Administrative Expense (15,500 units × $2.90) $44,950
Sales Commissions (13,000 units × $1.40) $18,200
Variable Administrative Expense (13,000 units × $.90) $11,700
Total Period Costs $135,300
We simply applied the above formulas
and we know that the period cost includes the major portion of selling and admin expense while the product cost includes the direct labor, direct material, and the manufacturing overhead cost or we can say total manufacturing cost
