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18 January, 08:39

Jensen Company reports the following:

Direct materials used $345,000

Direct labor incurred 250,000

Factory overhead incurred 400,000

Operating expenses 175,000

Jensen Company's period costs are

a. $345,000

b. $250,000

c. $400,000

d. $175,000

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Answers (1)
  1. 18 January, 10:26
    0
    d. $175,000

    Explanation:

    The computation of the period cost is shown below:

    Period costs = Operating expenses

    = $175,000

    It records only that expenses which are incurred during the particular year. Examples - Salaries expense, Depreciation, Repairs, and maintenance, Advertising expense, sales commission, etc

    All other information which is given is not relevant. Hence, ignored it
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