Larkin Industries has compiled the following cost data for January. The company needs to classify the costs as either product costs or period costs: Cost Item Direct materials Amount (RM) Utilities, factory Sales commissions Administrative salaries Indirect labor Advertising Depreciation of production equipment Direct labor Depreciation of administrative equipment Director's remuneration Required: 1. Compute the total amount of product cost. 2. Compute the total amount of period cost. RM 120,000 RM 13,500 RM 42,000 RM 125,000 RM 34,000 RM 160,000 RM 52,000 RM 115,000 RM 44,000 RM 155,000

Larkin Industries has compiled the following cost data for January. The company needs to classify the costs as either product costs or period costs: Cost Item Direct materials Amount (RM) Utilities, factory Sales commissions Administrative salaries Indirect labor Advertising Depreciation of production equipment Direct labor Depreciation of administrative equipment Director's remuneration Required: 1. Compute the total amount of product cost. 2. Compute the total amount of period cost. RM 120,000 RM 13,500 RM 42,000 RM 125,000 RM 34,000 RM 160,000 RM 52,000 RM 115,000 RM 44,000 RM 155,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...

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