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Knight Company reports the following costs and expenses in May Factory utilities Depreciation on factory equipment $16,300 Direct labor $70,400 13,050 Sales salaries 49,600 Property taxes on factory 4,900 building 52,600 Repairs to office equipment 82,100 Factory repairs Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory managers salary 3,100 1,400 2,890 16,500 3,140 138,700 Advertising 9,000 Office supplies used From the information: Determine the total amount of manufacturing overhead. Manufacturing overhead LINK TO TEXT Determine the total amount of product costs Product costs LINK TO TEXT Determine the total amount of period costs Period costs

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Answer #1

Calculate total amount of manufacturing overhead

Factory utilities 16300
Depreciation on factory equipment 13050
Indirect labor 52600
Indirect material 82100
Factory manager's salary 9000
Property taxes on factory building 3100
Factory repairs 2890
Total manufacturing overhead 179040

b) Product Cost = Direct material+Direct labor+Manufacturing overhead = 138700+70400+179040 = 388140

c) Period Cost

Depreciation on delivery trucks 4900
Sales salaries 49600
Repairs on factory equipment 1400
Advertising 16500
Office supplies used 3140
Total period Cost 75540
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