Question

All of the following companies manufacture toasters. The following costs were incurred by each company during September: Catalina Inc. Direct labor Rent Utilities Heating elements Depreciation Warner Co. $13,400 68,800 4,100 88,300 7,300 Painted Trails Co. $10,550 5,050 2,800 43,400 11,100 $73,600 98, 200 17,700 102,300 29,400 Sunrise Co. $37,000 55,800 9,300 66,200 39,200 Required: 1. What is the total conversion cost for Warner Co.? 2. What is the total manufacturing overhead for Painted Trails Co.? 3. What is the total conversion cost for Catalina Inc.? 4. What is the total manufacturing overhead for Sunrise Co.?

Answer 1

Solution

Requirement 1	Total conversion cost	$          93,600.00
Requirement 2	Total Manufacturing Overhead	$          18,950.00
Requirement 3	Total conversion cost	$       218,900.00
Requirement 4	Total Manufacturing Overhead	$       104,300.00

Working

		Warner co	Painted trails	Catalina Co	Sunrise co
A	Direct labor	$         13,400.00	$          10,550.00	$          73,600.00	$      37,000.00
	Overhead
B	Rent	$         68,800.00	$            5,050.00	$          98,200.00	$      55,800.00
C	Utilities	$           4,100.00	$            2,800.00	$          17,700.00	$        9,300.00
D	Depreciation	$           7,300.00	$          11,100.00	$          29,400.00	$      39,200.00
E=B+C+D	Total Manufacturing Overhead	$         80,200.00	$          18,950.00	$       145,300.00	$   104,300.00
F=A+E	Total conversion cost	$         93,600.00	$          29,500.00	$       218,900.00	$   141,300.00