Question

$69,800 48,100 Exercise 1-4 Knight Company reports the following costs and expenses in May. Factory utilities $16,200 Direct labor Depreciation on factory 13,350 Sales salaries equipment Property taxes on factory Depreciation on delivery trucks 4,900 building Indirect factory labor 49,600 Repairs to office equipment Indirect materials 82,900 Factory repairs Direct materials used 138,700 Advertising Factory manager's salary 8,900 Office supplies used 3,500 2,300 2,910 16,300 2,850 From the information: Determine the total amount of manufacturing overhead. Manufacturing overheads Determine the total amount of product costs. Product costs Determine the total amount of period costs.

Answer 1

a.	Manufacturing Overhead:
		$
	Factory utilities	16,200.00
	Depreciation on factory equipment	13,350.00
	Indirect factory labor	49,600.00
	Indirect materials	82,900.00
	Factory manager’s salary	8,900.00
	Property taxes on factory building	3,500.00
	Factory repairs	2,910.00
	TOTAL	177,360.00
b.	Product costs:
		$
	Direct materials	138,700.00
	Direct labor	69,800.00
	Manufacturing Overhead	177,360.00
	TOTAL	385,860.00
c.	Period costs:
		$
	Depreciation on delivery trucks	4,900.00
	Sales salaries	48,100.00
	Repairs to office equipment	2,300.00
	Advertising	16,300.00
	Office supplies used	2,850.00
	TOTAL	74,450.00