Question

Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015:

Factory rent	$	36,300
Company advertising		24,500
Wages paid to seamstresses		76,200
Depreciation on salespersons' vehicles		31,200
Thread		1,060
Utilities for factory		24,400
Cutting room supervisor's salary		30,100
President’s salary		76,900
Premium quality cotton material		41,000
Buttons		840
Factory insurance		18,900
Depreciation on sewing machines		7,700
Wages paid to cutters		50,200

Required:
1. Compute the cost of direct materials for Cotton White.



2. Compute the cost of direct labor for Cotton White.



3. Compute the cost of manufacturing overhead for Cotton White.



4. Compute the total manufacturing cost for Cotton White.



5. Compute the prime cost for Cotton White.



6. Compute the conversion cost for Cotton White.



7. Compute the total period cost for Cotton White.

Answer 1

4. Total manufacturing costi- -> Direct cos labour Direct material maruforturory overheadb 126,400 42,900 117,400 ) 286,700 Manufacturing cost 5. prime costi Direct Labour Direct material - 126,400 42,900 169,300 6. Conversion costi Direct labour - 126,400 + Manufacturing overheads 117,400 243,800 7. Total costi- Manufacturing cost 286,700 t company Advertering -> 24,500 + 31,200 t lepo Depreciation on Salesman rexhicles ... + president's salary 16,900 419,300

1. Cost of direct materials:- Thread - premium quality cotton material - Buttons - > 1,060 41,000 840 cost of direct materials 42,900 2. cost of direct labour wages paid to cutters Wages paid to seamstreses >50,200 76,200 126,400 3. Cost of manufacturing overheads Factory rent - 36,300 utilities for factory 24,400 Cutting room Supervisors -> 30, 100 salary Factory Insurance-> 18,900 Depreciation on Sewing 7700 machines 117,400