Question

The Darwin Company reports the following information that occurred during the current period: Sales commissions expense $15,600 Administrative office supplies 7,300 Depreciation on factory equipment 4,700 Indirect factory labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales 76,500 Administrative Office salaries expense 8,900 Indirect materials used 1,200 Manufacturing Overhead applied 17,200 Using the information provided above for Darwin Company, calculate the total costs that will be expensed when incurred on the income statement for the period:'

Answer 1

Answer:

$31,800

Explanation:

All Non Manufacturing expenses are treated as Period costs. Period Costs are expensed in Income Statement.

Calculation of Total Period Costs

Sales commissions expense                            $15,600

Administrative office supplies                            $7,300

Administrative Office salaries expense            $8,900

Total                                                                   $31,800

Conclusion

The total costs that will be expensed when incurred on the income statement for the period is $31,800.