The Tweety Company has gathered the following information: $\begin{array}{ll}
\text { Sales } & \$ 88,000 \
\text { Direct materials used } & 23,900 \
\text { Direct labor } & 15,200\\text { Fixed: }\
\text { Factory overhead } & 9,400 \
\text { Selling expenses } & 4,500 \
\text { Administrative expenses } & 7,700\\text { Variable: }\
\text { Factory overhead } & 9,300 \
\text { Selling expenses } & 8,400 \
\text { Administrative expenses } & 1,600
\end{array}$ There were no beginning or ending inventories. The total period cost is:
A) $13,900
B) $39,100
C) $18,700
D) $22,200

Question

Quizplus · Accepted Answer

Period costs include all selling and administrative expenses. Total period cost = Fixed selling expenses ($4,500) + Variable selling expenses ($8,400) + Fixed administrative expenses ($7,700) + Variable administrative expenses ($1,600) = $22,200.

The Tweety Company Has Gathered the Following Information There Were No Beginning or Ending Inventories