(Product and period costs; CGM and CGS) At the beginning of August 2006, Bob Hubble Corporation had the following account balances:

During August, the following transactions took place.
1. Raw material was purchased on account, $190,000.
2. Direct material ($40,400) and indirect material ($5,000) were issued to production.
3. Factory payroll consisted of $60,000 for direct labor employees and $14,000 for indirect labor employees.
4. Office salaries totaled $48,200 for the month.

5. Utilities of $13,400 were accrued; 70 percent of the utilities cost is for the factoiy area.
6. Depreciation of $20,000 was recorded on plant assets; 80 percent of the depreciation is related to factory machinery and equipment.
7. Rent of $22,000 was paid on the building. The factory occupies 60 per¬ cent of the building.
8. At the end of August, the Work in Process Inventory balance was $16,600.
9. At the end of August, the balance in Finished Goods Inventory was $17,800.
Bob Hubble Corporation uses an actual cost system and debits actual over¬ head costs incurred to Work in Process.

a. Determine the total amount of product cost (cost of goods manufac¬ tured) and period cost incurred during August 2006.

b. Compute the cost of goods sold for August 2006.LO1. 

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Raw Material Inventory (both direct and indirect) $24,000 Work in Process Inventory 36,000 Finished Goods Inventory 8,000