Costanzo Company manufactures a specialty line of silk-screened blouses. The company uses a job-order costing system. During the month, the following costs were incurred on Job 1041:
| Direct materials | $54,800 |
| Direct labor | $19,200 |
In addition, selling and shipping costs of $28,000 were incurred on the job. Manufacturing overhead was applied at the rate of $25 per machine-hour (MH) and Job 1041 required 320 MHs.
If Job 1041 consisted of 5,000 blouses (or units), what is the cost of goods sold per unit?
Consider the following information. Determine the total amount of period costs.
| Factory utilities | $17,000 | Direct labor | $73,700 |
| Depreciation on factory equipment | 13,150 | Sales salaries | 49,900 |
| Depreciation on delivery trucks | 4,300 | Property taxes on factory building | 3,300 |
| Indirect factory labor | 50,300 | Repairs to office equipment | 2,000 |
| Indirect materials | 82,400 | Factory repairs | 2,450 |
| Direct materials used | 141,700 | Advertising | 15,600 |
| Factory manager’s salary | 8,200 | Office supplies used | 3,510 |
Which one of the following is an example of a period cost?
A. A change in benefits for the union workers who work in the New York plant of a Fortune 1,000 manufacturer.
B. Workers’ compensation insurance on factory workers’ wages allocated to the factory.
C. A box cost associated with computers.
D. A manager’s salary for work that is done in the corporate head office.
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