Chapter 18, Problem 18.18MCQ

Healthy Dinners Co. produces frozen dinners for the health conscious consumer. During the quarter ended September 30, the company had the following cost data:

Dinner ingredients	$3,550,000
Preparation labor	900,000
Sales and marketing costs	125,000
Plant production overhead	50,000
Normal food spoilage	60,000
Abnormal food spoilage	40,000
General and administrative expenses	75,000

Based on the above, what is the total amount of period expenses reflected in the company’s income statement for the quarter ended September 30?

1. a. $200,000
2. b. $240,000
3. c. $290,000
4. d. $300,000