Loring Company incurred the following costs last year: Costs Amounts Direct materials $211,000 Factory rent 20,000 Direct labor 125,000 Factory utilities 6,800 Supervision in the factory 47,000 Indirect labor in the factory 34,000 Depreciation on factory equipment 7,900 Sales commissions 29,000 Sales salaries 70,000 Advertising 34,000 Depreciation on the headquarters building 9,400 Salary of the corporate receptionist 27,000 Other administrative costs 160,000 Salary of the factory receptionist 26,000 

Required: 

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

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 product cost?

1. Classify each of the costs using the table provided. Be sure to total the amounts in each column. If an amount box does not require an entry, leave it blank. Direct materials is shown as an example.

Loring Company

1	Costs	Product Cost: Direct Materials	Product Cost: Direct Labor	Product Cost: Manufacturing Overhead	Period Cost: Selling Expense	Period Cost: Administrative Expense
2	Direct materials	$211,000.00
3	Factory rent
4	Direct labor
5	Factory utilities
6	Supervision in the factory
7	Indirect labor in the factory
8	Depreciation on factory equipment
9	Sales commissions
10	Sales salaries
11	Advertising
12	Depreciation on the headquarters building
13	Salary of the corporate receptionist
14	Other administrative costs
15	Salary of the factory receptionist
16	Total

2. What was the total product cost for last year?

The total product cost is.

3. What was the total period cost for last year?

The total period cost is.

4. If 30,000 units were produced last year, what was the unit product cost? Round your answer to two decimal places.

The total unit product cost is

Answer rating: 100% (QA)

Product cost refers to the costs incurred to create a product These costs include direct labour d... View the full answer