Question

Exercise 1-4 Knight Company reports the following costs and expenses in May. Factory utilities Depreciation on factory equipment Depreciation on delivery trucks for sales office* $17,400||Direct labor $70,300 13,850Sales salaries 46,700 Property taxes on factory |building Repairs to sales office lequipment 84,200 Factory repairs |137,700||Advertising 8,700||Sales Office supplies used 3,900 3,100 Indirect factory labor Indirect materials Direct materials used Factory manager's salary 1,500 2,220 15,900 2י 53,700 a. Determine the total amount of manufacturing overhead. Show work. b. Determine the total amount of product costs. Show work. c. Determine the total amount of period costs. Show work.

Answer 1

MANUFACTURING OVERHEAD Factory Utilities $ 17,400.00 Indirect factory labor $ 53,700.00 Indirect materials $ 84,200.00 Depreciation on factory equipment $ 13,850.00 Property tax on factory building $ 3,100.00 Factory Repairs $ 2,220.00 Total $1,74,470.00 PRODUCT COSTS Direct material used Direct Labor $ 1,37,700.00 $ 70,300.00 Total $2,08,000.00 PERIOD COSTS Depreciation on delivery trucks for sales office | $ Factory Manager salary $ Sales Salaries $ Repairs to sales office equipment $ Advertising $ Sales Office supplies used $ Total $ 3,900.00 8,700.00 46,700.00 1,500.00 15,900.00 2,770.00 79,470.00

Note: Be careful while reading amounts.