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The following information relate to Questions 1 and 2. The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of
The following information relate to Questions 1 and 2. The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of January: Timber $25 000 Paint $5000 Glue $500 Wages-assembly personnel Wagesfactory supervisor Factory cleaner's wages Sales commissions Administrative staff salaries Depreciation-factory equipment Depreciationsales office equipment Utilities, insurance-factory Utilities, insurance-sales office $20 000 $3500 $2000 $10 000 $4000 $3000 $1000 $6000 $2000 Advertising $8000 Total costs $90 000 1. The prime costs are: A. $30 000. B. $50 000 C. $65 000. D. $50 500. 2. The period costs are: A. $0. B. $7000. c $25.000
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