A company manufactures lawnmowers. Compute the total amount of period costs from the following costs.

 A company manufactures lawnmowers. Compute the total amount of period costs from the following costs.
 
Cost item
a. Wheels, $25,000
b. Lawnmower frames, $50,000
c. Advertising costs, $10,000
d. Delivery costs, $16,000
e. Office manager’s salary, $7,000
f. Assembly worker wages, $15,000
g. Factory utilities, $7,500
h. Office accounting, $11,000
i. Factory equipment depreciation, $3,000

Multiple Choice
$40,500.
$44,000.Correct
$47,000.
$51,500.
$54,500.

Explanation
Period Costs = Selling Expenses + General and Administrative Expenses
Period Costs = Advertising Costs + Delivery Costs + Office Manager’s Salary + Office Accounting
Period Costs = $10,000 + $16,000 + $7,000 + $11,000
Factory Overhead = $44,000