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19 May, 05:09

Among the costs Kunee Company incurred during the month of August were the following: $15,000 - coolant used in the headquarters office air-conditioning system; $45,000 - property taxes on factory building; $10,000 - depreciation on trucks used to deliver products to customers; $2,000 - salary paid to a factory quality control inspector. The period costs from the above list total:A) $7,000. B) $25,000. C) $32,000. D) $30,000.

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  1. 19 May, 08:54
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    Answer: Option (B) is correct.

    Explanation:

    Given that,

    Coolant (used in the office air-conditioning system) cost = $15,000

    Property taxes on factory building = $45,000

    Depreciation on trucks = $10,000

    Salary paid = $2,000

    Period cost = Coolant cost + Depreciation on trucks

    = $15,000 + $10,000

    = $25,000
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