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Loring Company incured the following costs last year: Direct Materials $216,000 Factory Rent 24,000 Direct Labor 120,000 Factory Utilities 6,300 Supervision in the factory 50,000 Indirect...

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Accounting

Loring Company incured the following costs last year:
Direct Materials$216,000
Factory Rent24,000
Direct Labor120,000
Factory Utilities6,300
Supervision in the factory50,000
Indirect labor in the factory30,000
Depreciation on factory equipment9,000
Sales commissions27,000
Sales salaries65,000
Advertising37,000
Depreciation on the headquarters building10,000
Salary of the corporate receptionist30,000
Other administrative costs175,000
Salary of the factory receptionist28,000
Required:
1. Classify each of the costs using the following table format inexcel spread sheet. Be sure to total the amount in eachcolumn.  
Example: Direct materials, $216,000.
2. What was the total product cost for last year?
3. What was the total period cost for last year?
4. If 30,000 units were produced last year, what was the unitproduct cost?

Answer & Explanation Solved by verified expert
3.6 Ratings (326 Votes)
Product cost includes direct material cost direct labor cost and manufacturing overhead cost It involves all expenses that are related to manufacturing operations Period cost includes costs other than product costs Question 1 Question 2 Question 3 Amount Product cost or period    See Answer
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