Question

National Express reports the following costs and expenses in June 2017 for its delivery service. Indirect materials $7,100 Drivers’ salaries $16,500 Depreciation on delivery equipment 11,600 Advertising 5,300 Dispatcher’s salary 5,610 Delivery equipment repairs 440 Property taxes on office building 970 Office supplies 690 CEO’s salary 12,900 Office utilities 1,050 Gas and oil for delivery trucks 3,100 Repairs on office equipment 270 Determine the total amount of (a) delivery service (product) costs and (b) period costs. Delivery service (product) costs $ Period costs $

Answer 1

Answer:

Instructions are listed below

Explanation:

- Period costs are not directly tied to the production process.

- Product costs are the direct costs involved in producing a product.

Giving the following information:

Indirect materials $7,100

Drivers’ salaries $16,500

Depreciation on delivery equipment 11,600

Advertising 5,300

Dispatcher’s salary 5,610

Delivery equipment repairs 440

Property taxes on office building 970

Office supplies 690

CEO’s salary 12,900

Office utilities 1,050

Gas and oil for delivery trucks 3,100

Repairs on office equipment 270

Service costs:

Indirect materials $7,100

Drivers’ salaries $16,500

Depreciation on delivery equipment 11,600

Dispatcher’s salary 5,610

Delivery equipment repairs 440

Gas and oil for delivery trucks 3,100

Total= $44350

Period costs:

Advertising 5,300

Property taxes on office building 970

Office supplies 690

CEO’s salary 12,900

Office utilities 1,050

Repairs on office equipment 270

Total= $21180