Use the information below for Darwin Company to answer the questions that follow.

$$\begin{array} { l r }
\text { Sales } & \$ 76,500 \
\text { Direct materials used } & 7,300 \
\text { Depreciation on factory equipment } & 4,700 \
\text { Indirect labor } & 5,900 \
\text { Direct labor } & 10,500 \
\text { Factory rent } & 4,200 \
\text { Factory utilities } & 1,200 \
\text { Sales salaries expense } & 15,600 \
\text { Office salaries expense } & 8,900 \
\text { Indirect materials } & 1,200
\end{array}$$
-Darwin Company's period costs are
A) $24,500
B) $30,300
C) $29,200
D) $35,000

Question

Use the information below for Darwin Company to answer the questions that follow.
​
 $$\begin{array} { l r } 
\text { Sales } & \$ 76,500 \
\text { Direct materials used } & 7,300 \
\text { Depreciation on factory equipment } & 4,700 \
\text { Indirect labor } & 5,900 \
\text { Direct labor } & 10,500 \
\text { Factory rent } & 4,200 \
\text { Factory utilities } & 1,200 \
\text { Sales salaries expense } & 15,600 \
\text { Office salaries expense } & 8,900 \
\text { Indirect materials } & 1,200
\end{array}$$
-Darwin Company's period costs are
A) $24,500
B) $30,300
C) $29,200
D) $35,000

Quizplus · Accepted Answer

Period costs are the costs that are not directly tied to the production process and include sales and administrative expenses. For Darwin Company, period costs include Sales salaries expense ($15,600) and Office salaries expense ($8,900), totaling $24,500.

Use the Information Below for Darwin Company to Answer the Questions