Arden Company reported the following costs and expenses for the most recent month: What is the total amount of product costs? Total product costs What is the total amount of period costs? Total period costs What is the total amount of conversion costs? Total conversion costs What is the total amount of prime costs? Total prime costs
1. Products costs are raw material, labor, factory overheads like depreciation, fuel and packaging costs. Thus, Total product costs = Direct raw material + Direct labor + Manufacturing overhead = $80000 + $42000 + $19000 = $141000
2. Period costs are advertising, sales commissions, office supplies, office depreciation, legal and research and development costs. So, Total period costs are :selling and administrative expenses = $22000 + $35000 = $57000
3. conversion costs are the Direct labor and the Manufacturing overheads. Thus, Total Conversion costs = $42000 + $19000 = $61000
With us, you are either satisfied 100% or you get your money back-No monkey business
