Question

The following items​ (in millions) pertain to

ChesterChester

​Corporation:

LOADING...

​(Click the icon to view the​ items.)                                                                       

LOADING...

​(Click the icon to view the partial schedule of cost of goods​ manufactured.)                         

ChesterChester​'s

manufacturing costing system uses a​ three-part classification of direct​ materials, direct manufacturing​ labor, and manufacturing overhead costs. Read the requirements

LOADING...

.

Requirement 1. Calculate total prime costs and total conversion costs.

Total prime costs	$161	million
Total conversion costs	$105	million

Requirement 2. Calculate total inventoriable costs and period costs.

Total inventoriable costs		million
Period costs		million

For Specific Date			For Year 2017
Work-in-process inventory, Jan. 1, 2017	$14		Plant utilities	$6
Direct materials inventory, Dec. 31, 2017	3		Indirect manufacturing labor	30
Finished goods inventory, Dec. 31, 2017	18		Depreciation—plant and equipment	7
Accounts payable, Dec. 31, 2017	25		Revenues	355
Accounts receivable, Jan. 1, 2017	59		Miscellaneous manufacturing overhead	11
Work-in-process inventory, Dec. 31, 2017	1		Marketing, distribution, and customer-service costs	99
Finished goods inventory, Jan 1, 2017	44		Direct materials purchased	83
Accounts receivable, Dec. 31, 2017	40		Direct manufacturing labor	42
Accounts payable, Jan. 1, 2017	41		Plant supplies used	5
Direct materials inventory, Jan. 1, 2017	39		Property taxes on plant	4

PrintDone

Answer 1

Requinntit total Prime cost Ç Conversion cost: Total Primecast Particulars Amont in million $) Material consumed (on used Ant Direct material Color/17) (+) Directmaterial Purclared - Direct material (31/12/17) 39 83 -3 119 42 Direct manu facking labour to fail Prime cost

Convesion cost 0 Amt ( million & Direct manufacting labour = 42 Indirect manufaching labour miscellaneous manfacting overhead !! plant utilities Property taxes on plant = 4 plant supplies and = 5 Depreciation on plantą Equipmf = 7 st Tos total convesion (ofta is Tos

Requirement 2 - Amt in million tatal Inventoriable cost :- Direct material used [ Req-1) Direct manufaching labor Indirect manufacting labous miscellenous manfacting overhead plant utilities Plant supplies used Property tax on plant Depreciation on plant & Equipment of r = oss it total Inventoriable cost Period cost manlating, distribution & customer service cast qa total Period Colt