Question

For each of the following independent cases (A-E), compute the missing values in the table Case Prime Cost Conversion Cost Di

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Answer #1

Prime Cost = Direct Material + Direct Labor

Conversion Cost = Direct Labor + Manufacturing Overhead

Total manufacturing cost = Prime Cost + Manufacturing Overhead OR Conversion Cost + Direct Material

Case Prime Cost Conversion Cost Direct material Direct labor Manufacturing O/H Total manufacturing cost
A 9600 16410 3940 9600-3940 = 5660 10750 9600+10750 = 20350
B 43500-26100 = 17400 73500-10070 = 33430 10070 7330 26100 43500
C 57100 109800 43100 57100-43100 = 14000 109800-14000 = 95800 95800+57100 = 152900
D 21000+12150 = 33150 48650 21000 12150 48650-12150 = 36500 69650
E 17700+14000 = 31700 24700+14000 = 38700 56400-38700 = 17700 14000 24700 56400
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