Castillo Corporation, a manufacturer, reports costs for the year as follows: Direct Materials Used $ 540,000 Wages to Line Workers 470,000 Office Rent 29,000 Indirect Materials Used 575,000 How much is the total period costs for Castillo?

The direct material used, wages to line workers and Indirect material used are the product costs for the Castillo Corporation. Hence, they are not considered as the period costs.

Therefore, the office rent is considered as the period cost for Castillo because it is associated with the time period.

Period cost = office rent = $29,000

Castillo​ Corporation, a​ manufacturer, reports costs for the year as​ follows: Direct Materials Used $ 540,000 Wages to Line Workers 470,000 Office Rent 29,000 Indirect Materials Used 575,000 How much is the total period costs for​ Castillo?

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Castillo Corporation, a manufacturer, reports costs for the year as follows: Direct Materials Used $ 540,000 Wages to Line Workers 470,000 Office Rent 29,000 Indirect Materials Used 575,000 How much is the total period costs for Castillo?