Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 160 Units in beginning inventory 100 Units produced 16,000 Units sold 15,800 Units in ending inventory 300 Variable costs per unit: Direct materials $ 51 Direct labor $ 46 Variable manufacturing overhead $ 8 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $560,000 Fixed selling and administrative expense $173,800 What is the total period cost for the month under variable costing

Answer 1

Answer:

Period costs= $813,800

Explanation:

Giving the following information:

Units produced 16,000

Variable selling and administrative expense $5

Fixed manufacturing overhead $560,000

Fixed selling and administrative expense $173,800

The period costs are the costs not directly involved in the production.

Period costs= fixed overhead + total variable selling and administrative costs

Period costs= 560,000 + 5*16,000 + 173,800

Period costs= $813,800