Loring Company incurred the following costs last year: 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	Â

1.    Classify each of the above costs using the table format given below. Be sure to total the amounts in each column.

Example: Direct materials $216,000

 

Product Cost                                    Period Cost

Direct          Direct                                              Selling          Administrative Costs                    Materials       Labor       Overhead                      Expense              Expense Direct

materials             $216,000

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?