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Gemiola [76]
3 years ago
13

Sobota Corporation has provided the following partial listing of costs incurred during August:

Business
1 answer:
vladimir2022 [97]3 years ago
4 0

Answer:

a. The total amount of product cost is $369,800

b. The total amount of period cost is  $353,300

Explanation:

 Product costs are costs that are directly incurred in the production of goods. Products costs are traceable to production of goods. Examples of products costs are direct material cost and direct labor cost.

In contrast, period costs are costs that are incurred on the general affairs of the business. They are not related to production of goods. They are incurred on administering a business. Example includes salaries paid to directors of a company

Total amount of product cost                                       $                                                                          

Property taxes, factory                                               10,300

Indirect labor                                                               44,100

Direct materials                                                           172,600

Depreciation of production equipment                     48,300

Direct labor                                                                 <u> 94,500</u>

                                                                                    <u>369,800</u>

<u />

Total amount of period cost:                                       $

Marketing salaries                                                     51,900

Administrative travel                                                  105,000

Sales commissions                                                     52,400

Advertising                                                                 <u> 144,000</u>

                                                                                    <u>353,300</u>

     

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