The Walden Manufacturing Corp. has office support salaries of $4,000, factory supplies of $1,000, indirect labor of $6,000, direct materials of $16,000, advertising expense of $2,500, office expense of $14,000, and direct labor of $20,000. What is the total period cost?

Answer: Total Period Cost = $20,500

Explanation:

Given:

Salary = $4000

Factory supply = $1000

Indirect labor = $6000

Direct material = $16000

Advertising expense = $2500

Office expense = $14000

Direct labor = $20000

Period costs are the costs incurring that do not tend to be a section of manufacturing process. Therefore, we compute the Period Cost using the following formula:

Period costs = Salary + Advertising expense + Office expense

= $4,000 + $2,500 + $14,000

= $20,500