Difference between period cost and product costs
Cougar One, a manufacturer, reports costs for the year as follows:
|
Direct Materials Used
|
$100,000
|
|
Wages to Line Workers
|
50,000
|
|
Office Rent
|
30,000
|
|
Indirect Materials Used
|
200,000
|
How much is the total period costs for Cougar One?
Period Costs are only $30,000
$100K Direct material (DLM;
50K Direct Labor (DL) :
200K = Manufacturing overhead (MOH)
Calculating Cost of Goods sold
Cougar Two. reports the following cost information for the year :
|
Cost of Goods Manufactured
|
$70.000
|
|
Manufacturing Overhead
|
20,000
|
|
Finished Goods Inventory, March 1
|
5000
|
|
Finished Goods Inventory, March 31
|
1000
|
|
Work-in-Process Inventory, March 1
|
9,000
|
|
Work-in-Process Inventory, March 31
|
2,000
|
|
Direct Materials Used
|
25,600
|
What is the cost of goods sold for the year?