Question

Winner's Sporting Equipment manufactures sporting goods. Selected costs from the past year include:Plastics used to make products: $151,000Heating and lighting costs for factory: $65,000Factory janitor wages: $67,000Costs of shipping to customers: $11,000Lubricants used in factory equipment: $2,000Lighting costs for sales office: $20,000Depreciation on factory equipment: $23,000Office supplies for sales office: $6,000Insurance costs for factory: $13,000Maintenance worker wages: $99,000Freight in (on plastics): $7,500Aluminum used to make products: $175,000Assembly line worker wages: $142,000Salaries of salespeople: $74,000Period costs for Winner's Sporting Equipment totaled

Answer 1

$ 111000

Step-by-step explanation:

Period costs are not related to the "cost object" in this case sporting goods. They are more related to management or marketing rather than production, even though what ultimately makes a profitable business is its production quality.

I have not seen yet a business that markets an terrible product and benefits from it.

Therefore, X= it does not qualify as period cost

• Plastics used to make products X

• Heating and lighting costs for factory X

• Factory janitor wages X

• Costs of shipping to customers 11000

• Lubricants used in factory equipment X

• Lighting costs for sales office 20000

• Depreciation on factory equipment X

• Office supplies for sales office 6000

• Insurance costs for factory X

• Maintenance worker wages X

• Freight in (on plastics) X

• Aluminum used to make products X

• Assembly line worker wages X

• Salaries of salespeople 74000

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Let's place them together:

• Costs of shipping to customers 11000

• Lighting costs for sales office 20000

• Office supplies for sales office 6000

• Salaries of salespeople 74000

• Salaries of salespeople 74000

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Period costs for Winner's Sporting Equipment totaled 111000