The Sharpe Company reports the following information for 2015: Determine period costs for 2015.
A) $24,500
B) $30,300
C) $29,200
D) $35,000

Question

The Sharpe Company reports the following information for 2015:  Determine period costs for 2015.
A) $24,500 
B) $30,300 
C) $29,200 
D) $35,000

Quizplus · Accepted Answer

Period costs are selling and administrative expenses that are not directly related to the production of goods or services. 
From the given information, the selling expenses are $12,000 and administrative expenses are $12,500. 
Therefore, the total period costs for 2015 are $12,000 + $12,500 = $24,500, which is option A.

The Sharpe Company Reports the Following Information for 2015