Period costs include operating costs that are shown on the income statement when products are sold operating costs that are shown on the income statement in the period in which they are incurred current assets on the balance sheet current liabilities on the balance sheet A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for Finished Goods and Cost of Goods Sold Work in Process and Finished Goods Work in Process and Cost of Goods Sold Work in Process and Factory Overhead Selected accounts with some amounts omitted are as follows Work in Process 275,000 Aug. 31 Goods finished 1,030,000 Aug. 1 31 31 31 Balance Direct materials Direct labor Factory overhead 450,000 Aug. 1-31 Costs incurred Factory Overhead 145,000 Aug. 1 1 31 15,000 Balance Applied If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs? a. $120,000 b. $135,000 c. $10,000 d. $70,000 If the contribution margin ratio for France Company is 45%, sales were $425,000, and fixed costs were $100,000, what was the income from operations? a. $191,250 b. $233,750 c. $133,750 d. $91,250