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Exercise 14-4 Knight Company reports the following costs and expenses in May.
| Factory utilities | $ 16,200 | Repairs to office equipment | 2,300 |
| Direct Labor | $ 69,800 | Indirect materials | 82,900 |
| Depreciation on factory equipment | 13,350 | Factory repairs | 2,910 |
| Sales salaries | 48,100 | Direct materials used | 138,700 |
| Depreciation on delivery trucks | 4,900 | Advertising | 16,300 |
| Property taxes on factory building | 3,500 | Factory manager’s salary | 8,900 |
| Indirect factory labor | 49,600 | Office supplies used | 2,850 |
From the information:
Determine the total amount of manufacturing overhead.
Manufacturing overhead $
Determine the total amount of product costs.
Product costs $
Determine the total amount of period costs.
Period costs $
♦ Relevant knowledge
Costs for products are the total cost of production. These are direct labor, direct materials and manufacturing overhead. The term “period costs” refers to the other costs that are not related to manufacturing that a business incurs during an exact time. These include administrative and selling costs.
1 Answer