Question

Arden Company reported the following costs and expenses for the most recent month: Direct materials Direct labor Manufacturing overhead Selling expenses Administrative expenses 79,000 $ 41,000 $ 19,000 $22,000 34,000 Required: 1. What is the total amount of product costs? Total product costs 2. What is the total amount of period costs? Total period costs 3. What is the total amount of conversion costs? Total conversion costs 4. What is the total amount of prime costs? Total prime costs

Answer 1

Total amount of Product cost: Particulars Direct material Direct labor Manufacturing Overhead Total Product cost Amount $ 79,000 41,000 19,000 1,39,000 Total amount of Period cost: Particulars Selling expenses Administrative expense Total Period cost Amount $ 22,000 34,000 56,000 Total amount of Conversion cost: Particulars Direct labor Manufacturing Overhead Total Conversion cost Amount $ 41,000 19,000 60,000 Total amount of Prime cost: Particulars Direct material Direct labor Total Prime cost Amount $ 79,000 41,000 1,20,000