Blue Company reports the following costs and expenses in May.

Factory utilities $17,000

Direct labor $72,000

Depreciation on factory equipment 13,950

Sales salaries 47,500

Depreciation on delivery trucks 4,700

Property taxes on factory building 2,600

Indirect factory labor 49,900

Repairs to office equipment 1,900

Indirect materials 82,600

Factory repairs 2,350

Direct materials used 141,700

Advertising 15,500

Factory manager's salary 8,300

Office supplies used 2,790

Required:

Determine the total amount of:

(a) Manufacturing overhead

(b) Product costs

(c) Period costs

(a) Manufacturing overhead = $176,700

(b) Product costs = $390,400

(c) Period costs = $72,390

Explanation:

a. The computation of the manufacturing overhead is shown below:

= Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs + Factory manager salary

= $17,000 + $13,950 + $2,600 + $49,900 + $82,600 + $2,350 + $8,300

= $176,700

b. The computation of the product cost is shown below:

= Direct materials used + Direct labor + manufacturing overhead

= $141,700 + $72,000 + $176,700

= $390,400

c. The computation of the period cost is shown below:

= Sales salaries + Depreciation on delivery trucks + Repairs to office equipment + Advertising + Office supplies used

= $47,500 + $4,700 + $1,900 + $15,500 + $2,790

= $72,390