Question

Alameda Manufacturing manufactures a variety of wooden picture frames using recycled wood from old barns. Alameda Manufacturing has reported the following costs for the previous year. Assume no production inventories. Advertising Cost of hardware (hangers, decorations, etc) Cost of wood Depreciation on production equipment Factory property taxes Factory rent Glue Production supervisor salary Sales manager salary Utilities for factory Wages for maintenance workers Wages of assembly workers Wages of finishing workers $ 24,000 $ 43,400 $121,100 $ 32,400 $ 15,800 $ 49,700 $ 3,150 $ 40,600 $ 43,000 $ 27,900 $ 34,300 $ 87,700 $ 74,500 a. Compute the direct material costs. Direct Material Costs

Answer 1

a)	Direct material cost
	cost of hardware(hangers,decorations etc)					43,400
	cost of wood					121,100
	Direct material cost					164,500	answer
b)	Wages of assembly workers					87,700
	Wages of finishing workers					74,500
	direct labor cost					162,200	answer
c)	Manufacturing overhead
	Depreciation on production equipment					32,400
	Factory property taxes					15,800
	Factory rent					49,700
	Glue					3,150
	Production supervisory salary					40,600
	Utilities for factory					27,900
	wages for maintenance workers					34,300
	Manufacturing overhead					203,850	answer
d)	Total manufacturing cost					530,550	answer
e)	Prime cost					326,700	answer
f)	Conversion cost					366,050	answer