Question

Kennedy Company reports the following costs and expenses in May.

Factory utilities $ 16,500 Direct labor $79,100

Depreciation on factory equipment 12,650 Sales salaries 48,400

Property taxes on factory building 2,500  Depreciation on delivery trucks 3,800      

Indirect factory labor                                               48,900      Repairs to office equipment 1,300

Indirect materials                                                      70,800       Factory repairs                                                                  2,000

Direct materials used                                            157,600 Advertising                                                                       23,000

Factory manager's salary                                          8,000      Office supplies used                                                        4,640

Instructions

From the information, determine the total amount of:

(a)    Manufacturing overhead.

(b)    Product costs.

(c)    Period costs.

Answer 1

Solution : Page! (a) Manufacturing Overhead Factory Utilities $16,500 $12,650 $ 48,900 $ 8,000 $70,800 $ 2,500 $ 2,000 Depreciation on factory equipment Indirect factory labor Factory manager's salary Indirect materials Property taxes on factory building Factory repairs Manufacturing overhead (6) Product Costs Direct Materials Direct Labor Manufacturing overhead Product lasts $161,350 $157,600 $ 79,100 $161,350 $398,050

(c) Period Costs Page 3 $3,800 Depreciation on delivery trucks Sales salaries Repairs to office equipment Aducetisial $48,400 $ 1300 $ 23,000 Office Supplies used $ 4,640 Period Costs $81,140 Summary of Ansures (a) Manufacturing overhead (6) Product Costs $161,350 $398,050 (c) Period Costs $81, 140