Asked by Zabeeullah Haidary on Jun 26, 2024

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The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of January: The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of January:   The period costs are: A)  $0. B)  $7000. C)  $25 000. D)  $30 500.
The period costs are:

A) $0.
B) $7000.
C) $25 000.
D) $30 500.

Period Costs

Expenses that are not directly tied to the production of goods or services and are expensed in the period they are incurred, such as sales and administrative expenses.

Outdoor Furniture

Furniture designed for use outside the house, often made of materials resistant to weather, such as aluminum, plastic, or wood.

Casual Furniture Company

A business that specializes in creating and selling furniture designed for informal settings, typically emphasizing comfort and style.

  • Distinguish and categorize period costs from product costs.
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Verified Answer

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Benedict PasadillaJun 27, 2024
Final Answer :
C
Explanation :
The period costs include salaries and wages, rent, property taxes, utilities, and depreciation on equipment. In this case, the period costs are rent of $10,000, property taxes of $5,000, utilities of $7,000, and depreciation of $3,000, which add up to $25,000. The cost of materials and direct labor are product costs and are not included in the period costs.