FM Delivery Service reports the following costs and expenses in June 2022Indirect materials: $8400Depreciation on delivery equipment: $11200Dispatcher's salary: $5000Property taxes on office building: $870CEO's salary: $12000Gas and oil for delivery trucks: $3200Driver's salaries: $17000Advertising: $5100Delivery equipment repairs: $300Office supplies: $650Office utilities: $2490Repairs on office equipment: $180Determine the total amount of delivery service(product) costs.Determine the total amount of period costs.
Question
FM Delivery Service reports the following costs and expenses in June 2022Indirect materials: 11200Dispatcher's salary: 870CEO's salary: 3200Driver's salaries: 5100Delivery equipment repairs: 650Office utilities: 180Determine the total amount of delivery service(product) costs.Determine the total amount of period costs.
Solution 1
To determine the total amount of delivery service (product) costs and period costs, we first need to understand what each term means.
Product costs are all the direct costs associated with producing a product or delivering a service. In the case of FM Delivery Service, these would include:
- Indirect materials: $8400
- Depreciation on delivery equipment: $11200
- Gas and oil for delivery trucks: $3200
- Driver's salaries: $17000
- Delivery equipment repairs: $300
Adding these together, the total product costs amount to $42,100.
Period costs, on the other hand, are all the costs that are not tied directly to production or service delivery. These are often administrative or operational expenses. For FM Delivery Service, these would include:
- Dispatcher's salary: $5000
- Property taxes on office building: $870
- CEO's salary: $12000
- Advertising: $5100
- Office supplies: $650
- Office utilities: $2490
- Repairs on office equipment: $180
Adding these together, the total period costs amount to $26,290.
Solution 2
To determine the total amount of delivery service (product) costs and period costs, we first need to understand what each of these terms mean.
Product costs are all the direct costs associated with producing a product or delivering a service. In the case of FM Delivery Service, these would include:
- Indirect materials: $8400
- Depreciation on delivery equipment: $11200
- Gas and oil for delivery trucks: $3200
- Driver's salaries: $17000
- Delivery equipment repairs: $300
Adding these together, the total product costs amount to $41,100.
Period costs, on the other hand, are all the costs not included in product costs. Period costs are not directly tied to production output. In the case of FM Delivery Service, these would include:
- Dispatcher's salary: $5000
- Property taxes on office building: $870
- CEO's salary: $12000
- Advertising: $5100
- Office supplies: $650
- Office utilities: $2490
- Repairs on office equipment: $180
Adding these together, the total period costs amount to $24,290.
Similar Questions
FM Delivery Service reports the following costs and expenses in June 2022Indirect materialsDepreciation on delivery equipmentDispatcher's salaryProperty taxes on office buildingCEO's salaryGas and oil for delivery trucksDriver's salariesAdvertisingDelivery equipment repairsOffice suppliesOffice utilitiesRepairs on office equipmentidentify which are the period costs
A firm had purchases of $16,300, freight charges of $310, and purchases returns and allowances of $1,150 during one month. Its net delivered cost of purchases was:Multiple Choice$14,840.$15,460.$17,140.$17,760.
[The following information applies to the questions displayed below.] Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping expenses from month to month as per the data below: Month Units Shipped Total Shipping ExpenseJanuary 4 $ 2,240 February 4 $ 3,140 March 5 $ 2,650 April 2 $ 1,296 May 3 $ 2,220 June 6 $ 3,060 July 8 $ 4,416 4. What is the cost formula for shipping expenses?
Techuxia Corporation worked on four jobs during October: Job A256, Job A257, Job A258, and Job A260. At the end of October, the job cost sheets for these jobs contained the following data: Job A256 Job A257 Job A258 Job A260Beginning balance $ 2,600 $ 1,200 $ 0 $ 0Charged to the jobs during October: Direct materials $ 4,000 $ 4,900 $ 2,800 $ 4,900Direct labor $ 1,500 $ 2,400 $ 1,300 $ 1,100Manufacturing overhead applied $ 2,600 $ 2,900 $ 1,600 $ 2,000Units completed 100 0 900 0Units in process at the end of October 0 154 0 124Units sold during October 80 0 180 0Jobs A256 and A258 were completed during October. The other two jobs were incomplete at the end of October. There was no finished goods inventory on October 1. The company’s total manufacturing overhead applied equals its total actual manufacturing overhead.Required:What is the cost of goods sold for October?Note: Round intermediate calculations to 2 decimal places and final answer to nearest dollar amount.What is the total value of the finished goods inventory at the end of October?Note: Round intermediate calculations to 2 decimal places and final answer to nearest dollar amount.What is the total value of the work in process inventory at the end of October?
Multiple Choice QuestionIf income under variable costing is $500,000, fixed overhead in ending FG inventory is $10,000 and fixed overhead in beginning FG inventory is $15,000 then income under absorption costing is:Multiple choice question.$495,000$485,000$510,000$505,000
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.