Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: $\begin{array}{llr}
\text { Rent on manufacturing facility} &\$123,000\
\text {office manager's salary } &72,000\
\text { Wages of factory machine operators} &52,000\
\text {Depreciation on manufacturing equipment } &22,000\
\text {Insurance and taxes on selling and administrative } &12,000\
\text { offices } &\
\text { Direct materials murchased and used } &82,000
\end{array}$
Based on the above information, the amount of period costs shown on Steuben's income statement is:

Question

Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: $\begin{array}{llr}
  \text {  Rent on manufacturing facility} &\$123,000\
 \text {office manager's salary  } &72,000\
 \text {  Wages of factory machine operators} &52,000\
 \text {Depreciation on manufacturing equipment  } &22,000\
 \text {Insurance and taxes on selling and administrative  } &12,000\
 \text { offices } &\
 \text { Direct materials murchased and used } &82,000
\end{array}$
 Based on the above information, the amount of period costs shown on Steuben's income statement is:

Quizplus · Accepted Answer

Period costs are costs that are not directly related to the production of goods and are expensed in the period incurred. The period costs in this case include selling, general, and administrative expenses, which total $84,000 ($18,000 + $22,000 + $44,000). Therefore, the correct answer is C.

Steuben Company Produces Dog Houses Based on the Above Information, the Amount of Period Costs