1. Nikkel Corporation, a merchandising company, reported the following results for July:
Sales........................................................................$433,000
Cost of goods sold (all variable) ....................................... $174,800
Total variable selling expense..........................................$ 25,600
Total fixed selling expense..............................................$ 15,100
Total variable administrative expense..................................$ 14,800
Total fixed administrative expense......................................$ 31,400
The contribution margin for July is:
$171,300
$386,500
$217,800
$258,200
2. Salvadore Inc., a local retailer, has provided the following data for the month of September:
Merchandise inventory, beginning balance.................................$ 45,000
Merchandise inventory, ending balance.....................................$ 45,600
Sales..............................................................................$263,500
Purchases of merchandise inventory........................................$135,800
Selling expense.................................................................$ 19,700
Administrative expense.......................................................$ 60,900
The net operating income for September was:
$127,700
$128,700
$49,900
$47,700
3. Lettman Corporation has provided the following partial listing of costs incurred during November:
Marketing salaries..............................................$ 47,600
Property taxes, factory.........................................$ 14,600
Administrative travel..........................................$104,500
Sales commissions...............................................$55,300
Indirect labor.....................................................$42,000
Direct materials...............................................$167, 200
Advertising...................................................$ 145,300
Depreciation of production equipment......................$ 42,000
Direct labor......................................................$95,700
Required:
a. What is the total amount of product cost listed above?
Total product cost $
b. What is the total amount of period cost listed above?
Total period cost $