Loring Company incurred the following costs last year: Costs
Amounts
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 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?

Answer and Explanation:

1. The classification of each cost using the table provided i.e shown in the attachment is presented on the spreadsheet. Kindly find it below

2. Total product cost is

= Direct materials + Direct labor + Manufacturing overhead

= $216,000 + $120,000 + $147,300

= $483,300

The product cost includes direct material, direct labor and manufacturing overhead cost

3. Total period cost is

= Selling expenses + Administrative expenses

= $129,000 + $215,000

= $344,000

The period cost includes all selling and admin expenses

4. The total unit product cost is

= Total product cost ÷ Number of units produced

= $483,300 ÷ 30,000 units

= $16.11 per unit

answer; erp systems;

administrative jobs normally have someone answering phone calls and scheduling appointments, filing patient or customer information, making sure the front of the office looks nice to those who enter the building. administrative jobs can also include making sure the manager has everything they need for meetings, making delivers and much more. administrative jobs are important to most businesses as are customer service focused as they are often one of the first impressions a consumer sees of a business.