4-4 Product versus period costs (LO 1, 2)Carleton Closures, Inc., manufactures president of Carleton Closures, Inc., has gathered the following cost information from the company's accounting records for the latest month of operations. Advertising $25,000 Fire insurance premium for the factory building $6,250 Sales office utilities $2,500 Air filters for the buffing machines used to produce the clamps $1,875 Aluminum used to produce the clamps $37,500 Rent on the factory building $10,000 Freight to ship the clamps to customers $3,125 Sales department executives' salaries $42,500 Production supervisors' salaries $22,500 Assembly line workers' wages $60,000 Required a.Calculate the total period costs for the month. bCalculate the total product costs for the month. cCalculate the amount of manufacturing overhead incurred for the month.
4-4 Product versus period costs (LO 1, 2)Carleton Closures, Inc., manufactures president of Carleton Closures, Inc., has gathered the following cost information from the company's accounting records for the latest month of operations. Advertising $25,000 Fire insurance premium for the factory building $6,250 Sales office utilities $2,500 Air filters for the buffing machines used to produce the clamps $1,875 Aluminum used to produce the clamps $37,500 Rent on the factory building $10,000 Freight to ship the clamps to customers $3,125 Sales department executives' salaries $42,500 Production supervisors' salaries $22,500 Assembly line workers' wages $60,000 Required a.Calculate the total period costs for the month. bCalculate the total product costs for the month. cCalculate the amount of manufacturing overhead incurred for the month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4-4 Product versus period costs (LO 1, 2)Carleton Closures, Inc., manufactures president of Carleton Closures, Inc., has gathered the following cost information from the company's accounting records for the latest month of operations.
| Advertising |
$25,000
|
| Fire insurance premium for the factory building |
$6,250
|
| Sales office utilities |
$2,500
|
| Air filters for the buffing machines used to produce the clamps |
$1,875
|
| Aluminum used to produce the clamps |
$37,500
|
| Rent on the factory building |
$10,000
|
| Freight to ship the clamps to customers |
$3,125
|
| Sales department executives' salaries |
$42,500
|
| Production supervisors' salaries |
$22,500
|
| Assembly line workers' wages |
$60,000
|
Required
a.Calculate the total period costs for the month.
bCalculate the total product costs for the month.
cCalculate the amount of manufacturing
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