Lagle Corporation has provided the following information:

	Cost per Unit			Cost per Period
Direct materials	$	4.75
Direct labor	$	3.70
Variable manufacturing overhead	$	1.45
Fixed manufacturing overhead				$	18,200
Sales commissions	$	1.70
Variable administrative expense	$	0.55
Fixed selling and administrative expense				$	4,800

For financial reporting purposes, the total amount of period costs incurred to sell 7,000 units is closest to:

a.$15,750

b.$20,550

c.$18,200

d. $4,800

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3,090 and is paid at the beginning of the first year. Ninety percent of the premium applies to manufacturing operations and ten percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?

	Product	Period
A)	$3,090	$0
B)	$2,781	$309
C)	$1,854	$206
D)	$927	$103

Choice B?

Choice A?

Choice D?

Choice C?

The following costs were incurred in May:

Direct materials	$	41,000
Direct labor	$	13,000
Manufacturing overhead	$	46,000
Selling expenses	$	18,000
Administrative expenses	$	15,000

Conversion costs during the month totaled:

a$133,000

b.$54,000

c.$59,000

d.$87,000