Question

among the costs Kunee Company incurred during the month of august were the following:

1. 15,000 for coolant used in the headquarters office air conditioning system

2. 5,000 for property taxes on the factory building

3. 10,000 for depreciation on trucks used to deliver product for customers

4. 2,000 salary paid to a factory quality control inspector

the period costs for the above listed total:

A: 7000, B: 25000, C: 32000, D: 30,000

Answer 1

Calculate period costs as follows:

Coolant used in office air conditioning   $15000

Add: Depreciation on trucks                  $10,000

Total period costs                                  $25000

Therefore, option B, $25000 is the correct option.