Question

Mariposa Manufacturing builds custom wooden cabinets, Mariposa Manufacturing has reported the following costs for the previous year. Assume no production inventories. Advertising Cost of hardware (alides, handles, etc.) Cost of wood Depreciation on production equipment Factory property taxes Tactory rent Glue Production supervisor salary Sales manager salary Utilities for factory Nages for maintenance workers Wages of assembly workers Wages of finishing workers $ 70,000 $ 34,000 $117,000 $ 63,000 $ 17,300 $ 76,000 $ 3,800 $ 40,700 $ 41,600 $ 23,900 $ 31,800 $ 91,400 $ 77,300 25 a. Compute the direct material costs. Direct Material Costs b. Compute the direct labor cost. Direct Labor Cost

Answer 1

Answer

(a)	Calculation of Direct Material Cost
	Particulars	Amount in $
	cost of hardware (slides,handles ,etc)	34,000.00
	cost of wood	117,000.00
		151,000.00
(b)	Calculation of Direct Labor Cost
	Particulars	Amount in $
	wages of assembly workers	91,400.00
	Wages of finishing workers	77,300.00
		168,700.00
(C)	Calculation of Manufacturing overhead
	Particulars	Amount in $
	Depreciation on production equipment	63,000.00
	Factory property taxes	17,300.00
	Factory rent	76,000.00
	Glue	3,800.00
	Production supervisory salary	40,700.00
	Utilities for factory	23,900.00
	Wages for maintenance workers	31,800.00
		256,500.00
(d)	Calculation of total manufacturing cost
	Particulars	Amount in $
	Direct Material Cost	151,000.00
	Direct Labor Cost	168,700.00
	Manufacturing overhead	256,500.00
		576,200.00
(e)	Calculation of Prime Cost
	Particulars	Amount in $
	Direct Material Cost	151,000.00
	Direct Labor Cost	168,700.00
		319,700.00
(f)	Calculation of Conversion cost
	Particulars	Amount in $
	Direct Labor Cost	168,700.00
	Manufacturing overhead	256,500.00
		425,200.00
(g)	Calculation of Total Period cost
	Particulars	Amount in $
	Advertising	70,000.00
	Sales manager salary	41,600.00
		111,600.00