Salah Company manufactured 100,000 units in 2022 and reported the following costs:Indirect manufacturing labor $ 275, 200Rental costs - plant $ 384, 000Fire insurance - plant 116,000Depreciation - plant 224,000Property taxes - plant 32,000Administration costs 800,000Direct materials, 1/1/X5 384,000 Sales revenue 12, 800, 000 Direct manufacturing labor 2, 176, 000Direct material purchases 3, 136, 000 Finished goods, 12/31/X5 1,280, 000Sales commissions 640,000Advertising costs 480, 000Sales salaries 576,000 What are the total period costs incurred in 2022 ?
Salah Company manufactured 100,000 units in 2022 and reported the following costs:Indirect manufacturing labor $ 275, 200Rental costs - plant $ 384, 000Fire insurance - plant 116,000Depreciation - plant 224,000Property taxes - plant 32,000Administration costs 800,000Direct materials, 1/1/X5 384,000 Sales revenue 12, 800, 000 Direct manufacturing labor 2, 176, 000Direct material purchases 3, 136, 000 Finished goods, 12/31/X5 1,280, 000Sales commissions 640,000Advertising costs 480, 000Sales salaries 576,000 What are the total period costs incurred in 2022 ?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Salah Company manufactured 100, 000 units in 2022 and reported the following costs:Indirect
manufacturing labor $ 275, 200Rental costs - plant $ 384,000Fire insurance - plant 116,000 Depreciation -
plant 224, 000Property taxes - plant 32, 000Administration costs 800, 000Direct materials, 1/1/X5 384, 000
Sales revenue 12, 800, 000Direct manufacturing labor 2, 176, 000Direct material purchases 3, 136, 000
Finished goods, 12/31/X5 1,280, 000Sales commissions 640,000Advertising costs 480,000Sales salaries
576, 000 What are the total period costs incurred in 2022 ?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbf666dae-56c2-4f27-bcf5-8ada7b6cbe6e%2F57b3971f-eccc-4880-bbd2-fd78313ec7b7%2Fy36rl7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Salah Company manufactured 100, 000 units in 2022 and reported the following costs:Indirect
manufacturing labor $ 275, 200Rental costs - plant $ 384,000Fire insurance - plant 116,000 Depreciation -
plant 224, 000Property taxes - plant 32, 000Administration costs 800, 000Direct materials, 1/1/X5 384, 000
Sales revenue 12, 800, 000Direct manufacturing labor 2, 176, 000Direct material purchases 3, 136, 000
Finished goods, 12/31/X5 1,280, 000Sales commissions 640,000Advertising costs 480,000Sales salaries
576, 000 What are the total period costs incurred in 2022 ?
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