Question

In: Accounting

Eagle Corporation has provided the following partial listing of costs incurred during August:   Marketing salaries $...

Eagle Corporation has provided the following partial listing of costs incurred during August:

  Marketing salaries $ 46,400   
  Property taxes, factory $ 18,500   
  Administrative travel $ 98,900   
  Sales commissions $ 50,000   
  Indirect labor $ 38,900   
  Direct materials $ 172,400   
  Advertising $ 147,800   
  Depreciation of production equipment $ 46,900   
  Direct labor $ 87,500   


Required:

a. What is the total amount of product cost listed above?

     

b. What is the total amount of period cost listed above?

       

Solutions

Expert Solution

(a)-Total amount of product cost

Product costs includes Direct material, Direct Labor, & Manufacturing overhead

Product costs = Direct Materials + Direct labor + [Property taxes, Factory + Indirect labor + Depreciation of production equipment]

= $1,72,400 + 87,500 + [18,500 + 38,900 + 46,900]

= $3,64,200

(b)- Period costs includes all costs other than product costs

Period costs = Marketing salaries + Administrative travel + Sales commissions + Advertising

= $46,400 + 98,900 + 50,000 + 147,800

= $3,43,100

ekkarill92 answered 2 years ago
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