Leslie Manufacturing Reported the Following How Much of the Above Would Be Considered Period Costs

question 16

Multiple Choice

Leslie Manufacturing reported the following: $$\begin{array} { | l | r | } \hline\text { Revenue } & \$ 450,000 \\\hline \text { Beginning inventory of direct materials, January 1, 2015 } & 20,000 \\\hline \text { Purchases of direct materials } & 156,000 \\\hline \text { Ending inventory of direct materials, December 31, 2015 } & 18,000 \\\hline \text { Direct manufacturing labor } & 21,000 \\\hline \text { Indirect manufacturing costs } & 42,000 \\\hline \text { Beginning inventory of finished goods, January 1, 2015 } & 40,000 \\\hline \text { Cost of goods manufactured } & 114,000 \\\hline \text { Ending inventory of finished goods, December 31, 2015 } & 45,000 \\\hline \text { Operating costs } & 150,000 \\\hline\end{array}$$ How much of the above would be considered period costs for Leslie Manufacturing?

• A) $104,000
• B) $140,000
• C) $150,000
• D) $147,000

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Definitions:

Commercial Lumber

Lumber that is prepared for use in building and construction, typically standardized in dimensions and quality.

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Wood products refer to any product made from trees, including lumber, paper, furniture, and various building materials.

Biome

Large ecological zones that share similar climate conditions, flora, and fauna, characterizing broad ecological communities on land or in the oceans.

Gray Wolves

These are a species of canids native to the wilderness and remote areas of Eurasia and North America, known scientifically as Canis lupus.