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Loring Company incurred the following costs last year: Costs Amounts Direct materials $210,000 Factory rent 20,000 Direct labor 123,000 Factory utilities 6,400 Supervision in the

Loring Company incurred the following costs last year:

Costs

Amounts

Direct materials $210,000
Factory rent 20,000
Direct labor 123,000
Factory utilities 6,400
Supervision in the factory 54,000
Indirect labor in the factory 34,000
Depreciation on factory equipment 6,000
Sales commissions 26,000
Sales salaries 66,000
Advertising 34,000
Depreciation on the headquarters building 9,600
Salary of the corporate receptionist 35,000
Other administrative costs 186,000
Salary of the factory receptionist 24,000
Required:
1. Classify each of the costs using the table provided. Be sure to total the amounts in each column.
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?

Cost Classification

1. Classify each of the costs using the table provided. Be sure to total the amounts in each column. If an amount box does not require an entry, leave it blank. Direct materials is shown as an example.

Loring Company

1

Costs

Product Cost: Direct Materials

Product Cost: Direct Labor

Product Cost: Manufacturing Overhead

Period Cost: Selling Expense

Period Cost: Administrative Expense

2

Direct materials

$210,000.00

3

Factory rent

4

Direct labor

5

Factory utilities

6

Supervision in the factory

7

Indirect labor in the factory

8

Depreciation on factory equipment

9

Sales commissions

10

Sales salaries

11

Advertising

12

Depreciation on the headquarters building

13

Salary of the corporate receptionist

14

Other administrative costs

15

Salary of the factory receptionist

16

Total

Product Costs

2. What was the total product cost for last year?

The total product cost is .

3. What was the total period cost for last year?

The total period cost is .

4. If 30,000 units were produced last year, what was the unit product cost? Round your answer to two decimal places.

The total unit product cost is .

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