The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of January.The period costs are:

Question

Quizplus · Accepted Answer

The period costs are the costs that are not directly related to the manufacturing process and are incurred in a specific time period. In this case, the only costs that are period costs are the factory rent, utilities, and administrative salaries, which total $25,000. The other costs (direct materials, direct labor, and factory overhead) are all related to the manufacturing process and are considered product costs.

The Casual Furniture Company Manufactures Outdoor Furniture and Incurred the Following