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In: Accounting

National Express reports the following costs and expenses in June 2020 for its delivery service. Indirect...

National Express reports the following costs and expenses in June 2020 for its delivery service.

Indirect materials $7,400 Drivers’ salaries $16,200
Depreciation on delivery equipment 11,400 Advertising 5,400
Dispatcher’s salary 5,710 Delivery equipment repairs 400
Property taxes on office building 910 Office supplies 760
CEO’s salary 12,900 Office utilities 1,030
Gas and oil for delivery trucks 3,200 Repairs on office equipment 210


Determine the total amount of (a) delivery service (product) costs and (b) period costs.

Delivery service (product) costs $
Period costs $

Solutions

Expert Solution

Answer of Part a:

Total Delivery Service (Product Cost) = Indirect Materials + Depreciation on Delivery Equipment + Dispacter’s Salary + Gas & Oil for Delivery Trucks + Driver’s Salaries + Delivery Equipment Repairs
Total Delivery Service (Product Cost) = $7,400 + $11,400 + $5,710 + $3,200 + $16,200 + $400
Total Delivery Service (Product Cost) = $44,310

Answer of Part b:

Period Costs = Property taxes on Office Building + Advertising + Office Supplies + Office Utilities + Repairs on Office Equipment + CEO Salary
Period Costs = $910 + $5,400 + $760 + $1,030 + $210 + $12,900
Period Costs = $21,210

ekkarill92 answered 2 years ago
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