The Following Information Relates to Webster,Inc How Much Were Webster's Period Costs?
A)$87,700
B)$21,700
C)$534,700
D)$7,200

question 27

Multiple Choice

The following information relates to Webster,Inc.: $$\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 10,600 \\\hline \text { Administrative Salaries } & 17,600 \\\hline \text { Delivery Vehicle Depreciation } & 1,300 \\\hline \text { Factory Repair and Maintenance } & 200 \\\hline \text { Indirect Labor } & 10,500 \\\hline \text { Indirect Materials } & 10,000 \\\hline \text { Manufacturing Equipment Depreciation } & 1,000 \\\hline \text { Office Rent } & 51,000 \\\hline \text { President's Salary } & 2,500 \\\hline \text { Sales Revenue } & 530,000 \\\hline \text { Sales Salary } & 4,700 \\\hline\end{array}$$ How much were Webster's period costs?

• A)$87,700
• B)$21,700
• C)$534,700
• D)$7,200

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Definitions:

Straight-Line Methods

Straight-line methods are used in accounting to allocate the cost of an asset evenly over its useful life for the purposes of depreciation.