Wright Company reports production costs for 2009 as follows:
$$\begin{array} { | l | l | }
\hline \text { Direct materials used } & \$ 375,000 \
\hline \text { Direct labor incurred } & \$ 250,000 \
\hline \text { Manufacturing overhead incurred } & \$ 400,000 \
\hline \text { Operating expenses } & \$ 145,000 \
\hline
\end{array}$$ How much are Wright Company's period costs for 2009?
A) $250,000
B) $575,000
C) $145,000
D) $375,000

Question

Wright Company reports production costs for 2009 as follows:
$$\begin{array} { | l | l | } 
\hline \text { Direct materials used } & \$ 375,000 \
\hline \text { Direct labor incurred } & \$ 250,000 \
\hline \text { Manufacturing overhead incurred } & \$ 400,000 \
\hline \text { Operating expenses } & \$ 145,000 \
\hline
\end{array}$$ How much are Wright Company's period costs for 2009?
A) $250,000
B) $575,000
C) $145,000
D) $375,000

Quizplus · Accepted Answer

Period costs are the costs that are not directly tied to the production process and include selling, general, and administrative expenses. In this case, the operating expenses of $145,000 represent the period costs.

Wright Company Reports Production Costs for 2009 as Follows How Much Are Wright Company's Period Costs for 2009? A)

Wright Company Reports Production Costs for 2009 as Follows How Much Are Wright Company's Period Costs for 2009?
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