Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: 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:  Based on the above information, the amount of period costs shown on Steuben's income statement is:

Quizplus · Accepted Answer

Selling, general, and administrative costs (SG&A) are normally expensed in the period in which they are incurred. Because of this recognition pattern, nonproduct expenses are sometimes called period costs. In this case, the period costs of $180,000 are comprised of the office manager's salary of $150,000 and the insurance and taxes on selling and administrative offices of $30,000.

Steuben Company Produces Dog Houses