Answer:
a. The total amount of product cost is $369,800
b. The total amount of period cost is $353,300
Explanation:
Product costs are costs that are directly incurred in the production of goods. Products costs are traceable to production of goods. Examples of products costs are direct material cost and direct labor cost.
In contrast, period costs are costs that are incurred on the general affairs of the business. They are not related to production of goods. They are incurred on administering a business. Example includes salaries paid to directors of a company
Total amount of product cost $
Property taxes, factory 10,300
Indirect labor 44,100
Direct materials 172,600
Depreciation of production equipment 48,300
Direct labor <u> 94,500</u>
<u>369,800</u>
<u />
Total amount of period cost: $
Marketing salaries 51,900
Administrative travel 105,000
Sales commissions 52,400
Advertising <u> 144,000</u>
<u>353,300</u>
