A partial listing of costs incurred during December at Gagnier Corporation appears below:

  

 16.

award:
0 out of
10.00 points

 

 

The total of the period costs listed above for December is:

	$89,000
→	$310,000
	$325,000
	$399,000

Period costs = Administrative wages and salaries + Sales staff salaries + Corporate headquarters building rent + Marketing
= $105,000 + $68,000 + $34,000 + $103,000
= $310,000

The total of the manufacturing overhead costs listed above for December is:

	$325,000
	$635,000
→	$89,000
	$40,000

Manufacturing overhead costs = Factory supplies + Factory depreciation + Indirect labor
= $8,000 + $49,000 + $32,000
= $89,000

Multiple Choice

Difficulty: Medium

Learning Objective: 02-01 Identify and give examples of each of the three basic manufacturing cost categories.

 18.

award:
0 out of
10.00 points

 

 

The total of the product costs listed above for December is:

	$310,000
	$89,000
	$635,000
→	$325,000

Product costs = Direct materials + Direct labor + Manufacturing overhead
= $153,000 + $83,000 + $89,000
= $325,000