Loring Company incurred the following costs last year:

Direct materials ..................$216,000

Factory rent ...................24,000

Direct labor ....................120,000

Factory utilities ..................6,300

Supervision in the factory .............. 50,000

Indirect labor in the factory ...............30,000

Depreciation on factory equipment ...........9,000

Sales commissions .................27,000

Sales salaries ....................65,000

Advertising ...................37,000

Depreciation on the headquarters building .......$ 10,000

Salary of the corporate receptionist ............30,000

Other administrative costs ...............175,000

Salary of the factory receptionist ............28,000

Required:

1. Classify each of the costs using the following table format. Be sure to total the amounts in each column.

Example: Direct materials, $216,000.

2. What was the total product cost for last year?
3. What was the total period cost for last year?
4. If 30,000 units were produced last year, what was the unit productcost?

Transcribed Image Text:

Product Cost Period Cost Direct Direct Manufact. Selg Administrative Materials Labor Overhead Expense Costs Expense Direct materials $216,000