managerial accounting solutions - lettman corporation

Lettman Corporation has provided the following partial listing of costs incurred during November:

Marketing salaries	$	45,300
Property taxes, factory	$	11,400
Administrative travel	$	102,300
Sales commissions	$	54,800
Indirect labor	$	39,500
Direct materials	$	166,400
Advertising	$	147,800
Depreciation of production equipment	$	47,000
Direct labor	$	91,700

Required:

a.	What is the total amount of product cost listed above? (Omit the "$" sign in your response.)

Total product cost

$

b.	What is the total amount of period cost listed above? (Omit the "$" sign in your response.)

Total period cost

$

 
Explanation:

a.Product costs consist of direct materials, direct labor, and manufacturing overhead:

Direct materials			$	166,400
Direct labor				91,700
Manufacturing overhead:
Property taxes, factory	$	11,400
Indirect labor		39,500
Depreciation of production equipment		47,000		97,900
Total product cost			$	356,000

  
b.
Period costs consist of all costs other than product costs:

Administrative travel	$	102,300
Sales commissions		54,800
Marketing salaries		45,300
Advertising		147,800
Total period cost	$	350,200