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Indirect materials
$ 5,400
Drivers' salaries
$16,000
Depreciation on delivery equipment
11,200
Advertising
3,600
Dispatcher's salary
5,000
Delivery equipment repairs
300
Property taxes on office building
870
Office supplies
650
CEO's salary
12,000
Office utilities
990
Gas and oil for delivery trucks
2,200
Repairs on office equipment
180
Instructions:
Kwik Delivery Service reports the following costs and expenses in June 2014.
Determine the total amount of
(a) delivery service (product) costs and
(b) period costs.
Why it is important for analysis purposes to consider the time value of money when making decisions.
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Sales for December total 12,000 units. Each month's unit sales are expected to exceed the prior month's results by 5%. The product's selling price is $15 per unit.
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