The following information relates to Wagner,Inc.: $$\begin{array} { | l | r | }
\hline \text { Advertising Costs } & \$ 10,600 \
\hline \text { Administrative Salaries } & 17,600 \
\hline \text { Delivery Vehicle Depreciation } & 1300 \
\hline \text { Factory Repair and Maintenance } & 200 \
\hline \text { Indirect Labor } & 10,500 \
\hline \text { Indirect Materials } & 10,000 \
\hline \text { Manufacturing Equipment Depreciation } & 1000 \
\hline \text { Office Rent } & 51,000 \
\hline \text { President's Salary } & 2500 \
\hline \text { Sales Revenue } & 530,000 \
\hline \text { Sales Salary } & 4700 \
\hline
\end{array}$$ How much were Wagner's period costs?
A) $87,700
B) $21,700
C) $534,700
D) $7200

Question

The following information relates to Wagner,Inc.: $$\begin{array} { | l | r | } 
\hline \text { Advertising Costs } & \$ 10,600 \
\hline \text { Administrative Salaries } & 17,600 \
\hline \text { Delivery Vehicle Depreciation } & 1300 \
\hline \text { Factory Repair and Maintenance } & 200 \
\hline \text { Indirect Labor } & 10,500 \
\hline \text { Indirect Materials } & 10,000 \
\hline \text { Manufacturing Equipment Depreciation } & 1000 \
\hline \text { Office Rent } & 51,000 \
\hline \text { President's Salary } & 2500 \
\hline \text { Sales Revenue } & 530,000 \
\hline \text { Sales Salary } & 4700 \
\hline
\end{array}$$ How much were Wagner's period costs?
A) $87,700
B) $21,700
C) $534,700
D) $7200

Quizplus · Accepted Answer

Period costs are the costs that are not directly tied to the production process and include selling and administrative expenses. For Wagner, Inc., these costs include Advertising Costs ($10,600), Administrative Salaries ($17,600), Delivery Vehicle Depreciation ($1,300), Office Rent ($51,000), President's Salary ($2,500), and Sales Salary ($4,700). Adding these together gives a total of $87,700.

The Following Information Relates to Wagner,Inc How Much Were Wagner's Period Costs? A) $87,700 B) $21,700

The Following Information Relates to Wagner,Inc How Much Were Wagner's Period Costs?
A) $87,700
B) $21,700