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31 July, 22:48

The Walden Manufacturing Corp. has office support salaries of $4,000, factory supplies of $1,000, indirect labor of $6,000, direct materials of $16,000, advertising expense of $2,500, office expense of $14,000, and direct labor of $20,000. What is the total period cost?

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  1. 1 August, 00:09
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    Answer: Total Period Cost = $20,500

    Explanation:

    Given:

    Salary = $4000

    Factory supply = $1000

    Indirect labor = $6000

    Direct material = $16000

    Advertising expense = $2500

    Office expense = $14000

    Direct labor = $20000

    Period costs are the costs incurring that do not tend to be a section of manufacturing process. Therefore, we compute the Period Cost using the following formula:

    Period costs = Salary + Advertising expense + Office expense

    = $4,000 + $2,500 + $14,000

    = $20,500
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