Question

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Answer 1

1.

Costs	Product Cost: Direct Materials	Product Cost: Direct Labor	Product Cost: Manufacturing Overhead	Period Cost: Selling Expense	Period Cost: Administrative Expense
Direct materials	216000
Factory rent			24000
Direct labor		120000
Factory utilities			6300
Supervision in the factory			50000
Indirect labor in the factory			30000
Depreciation on factory equipment			9000
Sales commissions				27000
Sales salaries				65000
Advertising				37000
Depreciation on the headquarters building					10000
Salary of the corporate receptionist					30000
Other administrative costs					175000
Salary of the factory receptionist			28000
Total	216000	120000	147300	129000	215000

2. Total product cost = Direct Materials + Direct Labor + Overheads = 216000+120000+147300 = 483,300

3. Total period cost = Selling Expense+ Administrative Expense = 129000+ 215000 = 344,000

4. Unit product cost = 483,300 / 30,000 = 16.11 per unit