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ACCT 21 - Chapter 2: Assignment Exercise A: Product Costs, Period Costs, Prime Costs and Conversion Costs The following costs

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Product cost $             339,000
Period cost $               75,000
Prime cost $             245,000
Conversion cost $             194,000

Working

Manufacturing overhead are also conversion cost so every manufacturing overhead cost is conversion cost and product cost.

Product cost Period cost Prime cost Conversion cost
Selling expenses $    40,000
Direct labor $ 100,000 $   100,000 $   100,000
Factory insurance $    15,000 $     15,000
Factory depreciation $    20,000 $     20,000
Indirect labor $    35,000 $     35,000
Direct material $ 145,000 $   145,000
Administrative expense $    35,000
Factory utilities $    14,000 $     14,000
Indirect material $    10,000 $     10,000
TOTALS $ 339,000 $    75,000 $   245,000 $   194,000
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