Question

Quail Company builds snowboards. Quail Company has reported the following costs for the previous year. Assume no production inventories. $ 19,000 Cost of fiberglass (raw material) Factory rent Advertising Utilities for factory of assembly workers Production supervisor salary Sales manager salary Factory property taxes Depreciation on production equipment Cost of bindings (raw material) Wages $ 97,000 $ 43,000 $132,000 $ 84,000 $ 58,000 $ 35,000 $ 16,000 $ 37,000 $ 22,eee $ 2,100 $ 82,000 $ 49,000 Screws Wages of snowboard painters Wages for maintenance workers a. Compute the direct material costs. Direct Material Costs b. Compute the direct labor cost. Direct Labor Cost

Answer 1

A B 1 a) 2 Cost of fiberglass (raw material) $ 97,000 3 Cost of bindings (raw material) $ 22,000 4 Direct material costs $ 119,000 5 6 b) 7 Wages of assembly workers $ 84,000 8 Wages of snowboard painters $ 82,000 9 Direct labor costs $ 166,000 10 11 c) 12 Factory rent $ 43,000 13 Utilities for factory $ 19,000 14 Production supervisor salary $ 58,000 15 Factory property taxes $ 16,000 16 Depreciation on production equipment $ 37,000 17 Screws $ 2,100 18 Wages for maintenance workers $ 49,000 19 Manufacturing overhead $ 224,100 20 21 d) Total manufacturing cost $ 509,100 22 e) Prime cost $285,000 23 f) Conversion costs $ 390,100 24 g) 25 Advertising $ 132,000 26 Sales manager salary $ 35,000 27 Total period cost $ 167,000

A B 1 a) 2 Cost of fiberglass (raw material) 97000 3 Cost of bindings (raw material) 22000 4 Direct material costs =+B2+B3 5 6 b) 7 Wages of assembly workers 84000 8 Wages of snowboard painters 82000 9 Direct labor costs =+B7+B8 10 11 c) 12 Factory rent 43000 13 Utilities for factory 19000 14 Production supervisor salary 58000 15 Factory property taxes 16000 16 Depreciation on production equipment 37000 17 Screws 2100 18 Wages for maintenance workers 49000 19 Manufacturing overhead =SUM(B12:318) 20 21 d) Total manufacturing cost =+B4+B9+B19 22 e) Prime cost =+B4+B9 23 f) Conversion costs =+B9+B19 24 g) 25 Advertising 132000 26 Sales manager salary 35000 27 Total period cost =+B25+B26