Castillo Corporation,a manufacturer,reports costs for the year as follows: $$\begin{array} { | l | r | }
\hline \text { Direct Materials Used } & \$ 735,000 \
\hline \text { Wages to Line Workers } & 510,000 \
\hline \text { Office Rent } & 26,000 \
\hline \text { Indirect Materials Used } & 700,000 \
\hline
\end{array}$$ How much is the total period costs for Castillo?
A) $735,000
B) $510,000
C) $26,000
D) $700,000

Question

Castillo Corporation,a manufacturer,reports costs for the year as follows: $$\begin{array} { | l | r | } 
\hline \text { Direct Materials Used } & \$ 735,000 \
\hline \text { Wages to Line Workers } & 510,000 \
\hline \text { Office Rent } & 26,000 \
\hline \text { Indirect Materials Used } & 700,000 \
\hline
\end{array}$$ How much is the total period costs for Castillo?
A) $735,000
B) $510,000
C) $26,000
D) $700,000

Quizplus · Accepted Answer

Period costs are expenses that are not directly tied to the production process and include items such as office rent. In this case, the only period cost listed is the office rent of $26,000.

Castillo Corporation,a Manufacturer,reports Costs for the Year as Follows How Much Is the Total Period Costs for Castillo? A)

Castillo Corporation,a Manufacturer,reports Costs for the Year as Follows How Much Is the Total Period Costs for Castillo?
A)