The following information was obtained from Sizzler Company: • Advertising costs: $7 900
• Indirect labour: $9 000
• Direct labour: $31 000
• Indirect materials: $7 200
• Direct materials: $47 000
• Factory electricity and gas: $3 000
• Factory repair and maintenance: $700
• Factory cleaning costs: $1 900
• Manufacturing equipment depreciation: $1 600
• Delivery vehicle depreciation: $790
• Administrative wages and salaries: $19 000
How much were Sizzler's period costs?
A)$7 900
B)$27 690
C)$19 000
D)$19 790

Question

Quizplus · Accepted Answer

Period costs are costs that are expensed in the period in which they are incurred. These costs are not inventoried and are not considered to be part of the cost of goods sold. The period costs for Sizzler Company are:* Advertising costs: $7,900* Indirect labor: $9,000* Factory electricity and gas: $3,000* Factory repair and maintenance: $700* Factory cleaning costs: $1,900* Administrative wages and salaries: $19,000Total period costs: $27,690

The Following Information Was Obtained from Sizzler Company: • Advertising