Question

*Exercise 1-4 Knight Company reports the following costs and expenses in May Factory utilities Depreciation on factory equipment $17,200 Direct labor $70,400 14,450 Sales salaries 50,700 Property taxes on factory building Repairs to office equipment Factory repairs Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory manager's salary 4,100 50,500 81,600 3,000 1,400 2,230 15,100 3,140 139,700 Advertising 8,700 Office supplies used From the information: x Your answer is incorrect. Try again. Determine the total amount of manufacturing overhead Manufacturing overhead xYour answer is incorrect. Try again Determine the total amount of product costs. Product costs x Your answer is incorrect. Try again. Determine the total amount of period costs Period costs

Answer 1

a) Manufacturing overhead

Factory utilities	$17,200
Depreciation on factory equipment	$14,450
Indirect factory labor	$50,500
Indirect materials	$81,600
Factory manager’s salary	$8,700
Property taxes on factory building	$3,000
Factory repairs	$2,230
Total	$177,680

b) Product costs:

Direct materials	$139,700
Direct labor	$70,400
Manufacturing overhead	$177,680
Total	$387,780

c) Period costs:

Depreciation on delivery trucks	$4,100
Sales salaries	$50,700
Repairs to office equipment	$1,400
Advertising	$15,100
Office supplies used	$3,140
Total	$74,440