Cost ClassificationLoring Company incurred the following costs last year:CostsAmountsDirect materials$216,000Factory rent24,000Direct labor120,000Factory utilities6,300Supervision in the factory50,000Indirect labor in the factory30,000Depreciation on factory equipment9,000Sales commissions27,000Sales salaries65,000Advertising37,000Depreciation on the headquarters building10,000Salary of the corporate receptionist30,000Other administrative costs175,000Salary of the factory receptionist28,000Required:Question Content Area1. Classify each of the costs using the table provided. Be sure to total the amounts in each column. If an amount box does not require an entry, leave it blank. Direct materials is shown as an example.Loring CompanyCostsProduct Cost:Direct MaterialsProduct Cost:Direct LaborProduct Cost:Manufacturing OverheadPeriod Cost:Selling ExpensePeriod Cost:Administrative ExpenseDirect materials$216,000 $fill in the blank 846b32003fdcff2_1 $fill in the blank 846b32003fdcff2_2 $fill in the blank 846b32003fdcff2_3 $fill in the blank 846b32003fdcff2_4 Factory rentfill in the blank 846b32003fdcff2_5 fill in the blank 846b32003fdcff2_6 fill in the blank 846b32003fdcff2_7 fill in the blank 846b32003fdcff2_8 fill in the blank 846b32003fdcff2_9 Direct laborfill in the blank 846b32003fdcff2_10 fill in the blank 846b32003fdcff2_11 fill in the blank 846b32003fdcff2_12 fill in the blank 846b32003fdcff2_13 fill in the blank 846b32003fdcff2_14 Factory utilitiesfill in the blank 846b32003fdcff2_15 fill in the blank 846b32003fdcff2_16 fill in the blank 846b32003fdcff2_17 fill in the blank 846b32003fdcff2_18 fill in the blank 846b32003fdcff2_19 Supervision in the factoryfill in the blank 846b32003fdcff2_20 fill in the blank 846b32003fdcff2_21 fill in the blank 846b32003fdcff2_22 fill in the blank 846b32003fdcff2_23 fill in the blank 846b32003fdcff2_24 Indirect labor in the factoryfill in the blank 846b32003fdcff2_25 fill in the blank 846b32003fdcff2_26 fill in the blank 846b32003fdcff2_27 fill in the blank 846b32003fdcff2_28 fill in the blank 846b32003fdcff2_29 Depreciation on factory equipmentfill in the blank 846b32003fdcff2_30 fill in the blank 846b32003fdcff2_31 fill in the blank 846b32003fdcff2_32 fill in the blank 846b32003fdcff2_33 fill in the blank 846b32003fdcff2_34 Sales commissionsfill in the blank 846b32003fdcff2_35 fill in the blank 846b32003fdcff2_36 fill in the blank 846b32003fdcff2_37 fill in the blank 846b32003fdcff2_38 fill in the blank 846b32003fdcff2_39 Sales salariesfill in the blank 846b32003fdcff2_40 fill in the blank 846b32003fdcff2_41 fill in the blank 846b32003fdcff2_42 fill in the blank 846b32003fdcff2_43 fill in the blank 846b32003fdcff2_44 Advertisingfill in the blank 846b32003fdcff2_45 fill in the blank 846b32003fdcff2_46 fill in the blank 846b32003fdcff2_47 fill in the blank 846b32003fdcff2_48 fill in the blank 846b32003fdcff2_49 Depreciation on the headquarters buildingfill in the blank 846b32003fdcff2_50 fill in the blank 846b32003fdcff2_51 fill in the blank 846b32003fdcff2_52 fill in the blank 846b32003fdcff2_53 fill in the blank 846b32003fdcff2_54 Salary of the corporate receptionistfill in the blank 846b32003fdcff2_55 fill in the blank 846b32003fdcff2_56 fill in the blank 846b32003fdcff2_57 fill in the blank 846b32003fdcff2_58 fill in the blank 846b32003fdcff2_59 Other administrative costsfill in the blank 846b32003fdcff2_60 fill in the blank 846b32003fdcff2_61 fill in the blank 846b32003fdcff2_62 fill in the blank 846b32003fdcff2_63 fill in the blank 846b32003fdcff2_64 Salary of the factory receptionistfill in the blank 846b32003fdcff2_65 fill in the blank 846b32003fdcff2_66 fill in the blank 846b32003fdcff2_67 fill in the blank 846b32003fdcff2_68 fill in the blank 846b32003fdcff2_69 Totals$fill in the blank 846b32003fdcff2_70 $fill in the blank 846b32003fdcff2_71 $fill in the blank 846b32003fdcff2_72 $fill in the blank 846b32003fdcff2_73 $fill in the blank 846b32003fdcff2_74 Question Content Area2. What was the total product cost for last year?The total product cost is $fill in the blank aa9ef5f7704ef97_1.3. What was the total period cost for last year?The total period cost is $fill in the blank aa9ef5f7704ef97_2.4. If 30,000 units were produced last year, what was the unit product cost? Round your answer to two decimal places.

Answered: Image /qna-images/answer/109e9492-9217-421c-b534-bc5f058a6662.jpg

Answered: Cost Classification Loring Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question Content Area

1. Classify each of the costs using the table provided. Be sure to total the amounts in each column. If an amount box does not require an entry, leave it blank. Direct materials is shown as an example.

Loring Company
Costs	Product Cost: Direct Materials	Product Cost: Direct Labor	Product Cost: Manufacturing Overhead	Period Cost: Selling Expense	Period Cost: Administrative Expense
Direct materials	$216,000		$fill in the blank 846b32003fdcff2_1		$fill in the blank 846b32003fdcff2_2	$fill in the blank 846b32003fdcff2_3	$fill in the blank 846b32003fdcff2_4
Factory rent	fill in the blank 846b32003fdcff2_5		fill in the blank 846b32003fdcff2_6		fill in the blank 846b32003fdcff2_7	fill in the blank 846b32003fdcff2_8	fill in the blank 846b32003fdcff2_9
Direct labor	fill in the blank 846b32003fdcff2_10		fill in the blank 846b32003fdcff2_11		fill in the blank 846b32003fdcff2_12	fill in the blank 846b32003fdcff2_13	fill in the blank 846b32003fdcff2_14
Factory utilities	fill in the blank 846b32003fdcff2_15		fill in the blank 846b32003fdcff2_16		fill in the blank 846b32003fdcff2_17	fill in the blank 846b32003fdcff2_18	fill in the blank 846b32003fdcff2_19
Supervision in the factory	fill in the blank 846b32003fdcff2_20		fill in the blank 846b32003fdcff2_21		fill in the blank 846b32003fdcff2_22	fill in the blank 846b32003fdcff2_23	fill in the blank 846b32003fdcff2_24
Indirect labor in the factory	fill in the blank 846b32003fdcff2_25		fill in the blank 846b32003fdcff2_26		fill in the blank 846b32003fdcff2_27	fill in the blank 846b32003fdcff2_28	fill in the blank 846b32003fdcff2_29
Depreciation on factory equipment	fill in the blank 846b32003fdcff2_30		fill in the blank 846b32003fdcff2_31		fill in the blank 846b32003fdcff2_32	fill in the blank 846b32003fdcff2_33	fill in the blank 846b32003fdcff2_34
Sales commissions	fill in the blank 846b32003fdcff2_35		fill in the blank 846b32003fdcff2_36		fill in the blank 846b32003fdcff2_37	fill in the blank 846b32003fdcff2_38	fill in the blank 846b32003fdcff2_39
Sales salaries	fill in the blank 846b32003fdcff2_40		fill in the blank 846b32003fdcff2_41		fill in the blank 846b32003fdcff2_42	fill in the blank 846b32003fdcff2_43	fill in the blank 846b32003fdcff2_44
Advertising	fill in the blank 846b32003fdcff2_45		fill in the blank 846b32003fdcff2_46		fill in the blank 846b32003fdcff2_47	fill in the blank 846b32003fdcff2_48	fill in the blank 846b32003fdcff2_49
Depreciation on the headquarters building	fill in the blank 846b32003fdcff2_50		fill in the blank 846b32003fdcff2_51		fill in the blank 846b32003fdcff2_52	fill in the blank 846b32003fdcff2_53	fill in the blank 846b32003fdcff2_54
Salary of the corporate receptionist	fill in the blank 846b32003fdcff2_55		fill in the blank 846b32003fdcff2_56		fill in the blank 846b32003fdcff2_57	fill in the blank 846b32003fdcff2_58	fill in the blank 846b32003fdcff2_59
Other administrative costs	fill in the blank 846b32003fdcff2_60		fill in the blank 846b32003fdcff2_61		fill in the blank 846b32003fdcff2_62	fill in the blank 846b32003fdcff2_63	fill in the blank 846b32003fdcff2_64
Salary of the factory receptionist	fill in the blank 846b32003fdcff2_65		fill in the blank 846b32003fdcff2_66		fill in the blank 846b32003fdcff2_67	fill in the blank 846b32003fdcff2_68	fill in the blank 846b32003fdcff2_69
Totals	$fill in the blank 846b32003fdcff2_70		$fill in the blank 846b32003fdcff2_71		$fill in the blank 846b32003fdcff2_72	$fill in the blank 846b32003fdcff2_73	$fill in the blank 846b32003fdcff2_74

Question Content Area

2. What was the total product cost for last year?
The total product cost is $fill in the blank aa9ef5f7704ef97_1.

3. What was the total period cost for last year?
The total period cost is $fill in the blank aa9ef5f7704ef97_2.

4. If 30,000 units were produced last year, what was the unit product cost? Round your answer to two decimal places.

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Costs	Amounts
Direct materials	$216,000
Factory rent	24,000
Direct labor	120,000
Factory utilities	6,300
Supervision in the factory	50,000
Indirect labor in the factory	30,000
Depreciation on factory equipment	9,000
Sales commissions	27,000
Sales salaries	65,000
Advertising	37,000
Depreciation on the headquarters building	10,000
Salary of the corporate receptionist	30,000
Other administrative costs	175,000
Salary of the factory receptionist	28,000