Use the information below for Jensen Company to answer the questions that follow.

$$\begin{array} { l r }
\text { Direct materials used } & \$ 345,000 \
\text { Direct labor incurred } & 250,000 \
\text { Factory overhead incurred } & 400,000 \
\text { Operating expenses } & 175,000
\end{array}$$
-Jensen Company's period costs are
A) $345,000
B) $250,000
C) $400,000
D) $175,000

Question

Use the information below for Jensen Company to answer the questions that follow.
​
 $$\begin{array} { l r } 
\text { Direct materials used } & \$ 345,000 \
\text { Direct labor incurred } & 250,000 \
\text { Factory overhead incurred } & 400,000 \
\text { Operating expenses } & 175,000
\end{array}$$
-Jensen Company's period costs are
A) $345,000
B) $250,000
C) $400,000
D) $175,000

Quizplus · Accepted Answer

Period costs are the costs that are not directly tied to the production process and are expensed in the period in which they are incurred. Operating expenses fall into this category, making $175,000 the correct answer.

Use the Information Below for Jensen Company to Answer the Questions