Woodcarving Co. incurred the following costs during May:
Conversion costs | $ | 460,000 | |
Prime costs | $ | 390,000 | |
Manufacturing overhead | $ | 315,000 | |
What was the amount of direct materials and direct labor used in May?
Direct materials | Direct labor | |||||||
A. | $ | 100,000 | $ | 295,000 | ||||
B. | $ | 105,000 | $ | 215,000 | ||||
C. | $ | 245,000 | $ | 145,000 | ||||
D. | $ | 70,000 | $ | 75,000 | ||||
Prime cost=Direct material+Direct labor
Conversion cost=Direct labor+Manufacturing overhead
460,000=Direct labor+315,000
Direct labor=(460,000-315,000)=$145,000
390,000=Direct material+145,000
Direct material=(390,000-145,000)=$245,000
Hence the correct option is C.
Woodcarving Co. incurred the following costs during May: Conversion costs $ 460,000 Prime costs $ 390,000...
Exercise A: Product Costs, Period Costs, Prime Costs and Conversion Costs The following costs were taken from the Kelly's Company. You are being asked to calculate the product costs, period costs, prime costs, and conversion costs. Cost incurred: I Selling expenses $40,000 Direct labor $100,000 Factory insurance $15,000 Factory depreciation $20,000 Indirect labor $35,000 Direct material $145,000 Administrative expenses $35,000 14,000 Factory utilities Indirect material $10,000
ACCT 21 - Chapter 2: Assignment Exercise A: Product Costs, Period Costs, Prime Costs and Conversion Costs The following costs were taken from the Kelly's Company. You are being asked to calculate the product costs, period costs, prime costs, and conversion costs. Cost incurred: Selling expenses $40,000 Direct labor $100,000 Factory insurance $15,000 Factory depreciation $20,000 Indirect labor $35,000 Direct material $145,000 Administrative expenses $35,000 Factory utilities 14,000 Indirect material $10,000
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