Wright Company reports production costs for 2012 as follows: How much are Wright Company's period costs?

Question

Wright Company reports production costs for 2012 as follows:  How much are Wright Company's period costs?

Quizplus · Accepted Answer

Production costs are costs incurred in the manufacturing process of a product, while period costs are costs that are not directly related to the production of goods. Therefore, we can eliminate choices A and B as they include production costs. The total period costs can be calculated by subtracting the production costs ($1,550,000) from the total costs ($1,695,000). This gives us a total of $145,000, which is choice C.

Wright Company Reports Production Costs for 2012 as Follows