Question

$3,120 1,030 31.100 130 5,130 4,130 Plastic tubing 1,280 1,180 2,020

Answer 1

Answer to Requirement 1:

Answer to Requirement 2:

Direct Materials = Plastic tubing
Direct Materials = $4,130

Direct Labor = Wages paid to assembly workers + Wages paid to painters
Direct Labor = $31,100 + $8,200
Direct Labor = $39,300

Manufacturing Overhead = Factory rent + Screws + Utilities for factory + Assembly supervisor’s salary + Sandpaper + Paint + Factory insurance + Depreciation on cutting machines
Manufacturing Overhead = $3,120 + $585 + $860 + $3,590 + $130 + $245 + $1,180 + $2,020
Manufacturing Overhead = $11,730

Prime Cost = Direct Materials + Direct Labor
Prime Cost = $4,130 + $39,300
Prime Cost = $43,430

Conversion Cost = Direct Labor + Manufacturing Overhead
Conversion Cost = $39,300 + $11,730
Conversion Cost = $51,030

Total Product Cost = Direct Materials + Direct Labor + Manufacturing Overhead
Total Product Cost = $4,130 + $39,300 + $11,730
Total Product Cost = $55,160