The following information relates to Webster Inc.: $$\begin{array} { | l | r | }
\hline \text { Advertising Costs } & \$ 10,270 \
\hline \text { Administrative Salaries } & 24,700 \
\hline \text { Delivery Vehicle Depreciation } & 1,027 \
\hline \text { Factory Repair and Maintenance } & 910 \
\hline \text { Indirect Labor } & 11,700 \
\hline \text { Indirect Materials } & 9,360 \
\hline \text { Manufacturing Equipment Depreciation } & 2,080 \
\hline \text { Office Rent } & 61,100 \
\hline \text { President's Salary } & 40,300 \
\hline \text { Sales Revenue } & 450,000 \
\hline \text { Sales Salary } & 4,500 \
\hline
\end{array}$$ How much were Webster's period costs?

Question

The following information relates to Webster Inc.: $$\begin{array} { | l | r | } 
\hline \text { Advertising Costs } & \$ 10,270 \
\hline \text { Administrative Salaries } & 24,700 \
\hline \text { Delivery Vehicle Depreciation } & 1,027 \
\hline \text { Factory Repair and Maintenance } & 910 \
\hline \text { Indirect Labor } & 11,700 \
\hline \text { Indirect Materials } & 9,360 \
\hline \text { Manufacturing Equipment Depreciation } & 2,080 \
\hline \text { Office Rent } & 61,100 \
\hline \text { President's Salary } & 40,300 \
\hline \text { Sales Revenue } & 450,000 \
\hline \text { Sales Salary } & 4,500 \
\hline
\end{array}$$ How much were Webster's period costs?

Quizplus · Accepted Answer

Period costs include all costs that are not directly tied to the production process. For Webster Inc., these are Advertising Costs ($10,270), Administrative Salaries ($24,700), Office Rent ($61,100), President's Salary ($40,300), and Sales Salary ($4,500). Adding these gives $141,870.

The Following Information Relates to Webster Inc How Much Were Webster's Period Costs? A) $141,897 B) $474,050

The Following Information Relates to Webster Inc How Much Were Webster's Period Costs?
A) $141,897
B) $474,050