Blue Company reports the following costs and expenses in May.
Factory utilities $17,000
Direct labor $72,000
Depreciation on factory equipment 13,950
Sales salaries 47,500
Depreciation on delivery trucks 4,700
Property taxes on factory building 2,600
Indirect factory labor 49,900
Repairs to office equipment 1,900
Indirect materials 82,600
Factory repairs 2,350
Direct materials used 141,700
Advertising 15,500
Factory manager’s salary 8,300
Office supplies used 2,790
Required :
Determine the total amount of:
(a) Manufacturing overhead
(b) Product costs
(c) Period costs

= Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs+ Factory manager salary

= $17,000 + $13,950 + $2,600 + $49,900 + $82,600 + $2,350 + $8,300

= $176,700

b. The computation of the product cost is shown below:

= Direct materials used + Direct labor + manufacturing overhead

= $141,700 + $72,000+ $176,700

= $390,400

c. The computation of the period cost is shown below:

= Sales salaries + Depreciation on delivery trucks + Repairs to office equipment + Advertising + Office supplies used

= $47,500 + $4,700 + $1,900 + $15,500 + $2,790

= $72,390