Question

Q1: The following information relates to ALFAHD Corporation (AMOUNTS IN SAUDI RIYAL) 4 MARKS Advertising Costs...

Q1: The following information relates to ALFAHD Corporation (AMOUNTS IN SAUDI RIYAL) 4 MARKS

Advertising Costs

SR12,470

Administrative Salaries

28,700

Delivery Vehicle Depreciation

1,000

Factory Repair and Maintenance

910

Indirect Labor

11,700

Indirect Materials

9,360

Manufacturing Equipment Depreciation

2,080

Office Rent

42,300

President's Salary

60,000

Sales Revenue

450,000

Sales Salary

38,000


Required:

How much were ALFAHD period costs and product costs?

Please Tell me the answer with the equation.

Homework Answers

Answer #1

Period cost includes all selling and administrative expenese So period cost is :

Advertising Costs 12470
Administrative Salaries 28700
Delivery Vehicle Depreciation 1000
Office Rent 42300
Sales Salary 38000
President's salary 60000
Total period cost $182470

Product cost includes all direct cost and indirect cost related to factory.

Factory Repair and Maintenance

910
Indirect Labor 11700
Indirect Materials 9360
Manufacturing Equipment Depreciation 2080
Total product cost $24050
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