[nafreeman]

Rapid Delivery Service reports the following costs and expenses in June 2010.
Indirect materials $5,400 Drivers' salaries $11,000
Depreciation on delivery equipment 11,200 Advertising 1,600
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


Determine the total amount of (a) delivery service (product) costs and (b) period costs

[pready]

Product costs are costs that are involved in producing a product like direct materials, which are materials that are used to make a product and direct labor costs, which are costs for the workers making the product.

Period costs are other costs that cannot be assigned to a particular job or product like rent for the building used in the production process, utilities and supervisor salaries as well as salaries for executives and other administrative salaries.