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Managerial Accounting

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Period Costs for Fabrics

MGRACT-VBO1NX

Springs Industries manufactures fabrics for sale to wholesalers and retailers. The cost report shows direct materials of \$30,000, headquarters depreciation of \$54,000, administration clerical costs of \$22,000, labor costs of \$35,000, factory depreciation of \$46,000 and marketing costs of \$48,000.

What amount should be recorded as period costs?

A

$124,000

B

$154,000

C

$200,000

D

$248,000