Question

Factory rent Company advertising Wages paid to assembly workers Depreciation for salespersons vehicles Screws Utilities for factory Assembly supervisors salary Sandpaper Presidents salary Plastic tubing Paint Sales commissions Factory insurance Depreciation on cutting machines Wages paid to painters $ 3,140 1,070 31,000 2,180 580 870 3,520 135 5,040 4,170 225 1,210 1,100 2,130 8,200

2. Determine the total cost for each of the following: a. Direct Materials b. Direct Labor Manufacturing Overhead d. Prime Cost e. Conversion Cost f. Total Product Cost

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Answer #1
Particulars Amount ($) Amount ($)
Screws 580
Sandpaper 135
Plastic Tubing 4170
Paint 225
Cost of Direct Material    5110
ADD
Wages paid to Assembly workers 31000
Assembly Supervisors Salary 3520
Wages paid to painters 8200
Cost of Direct Labour 42720
Prime Cost (Direct Material +Direct Labour) 47830
ADD Manufacturing Overheads
Factory Rent   3140
Utilities for factory 870
Factory Insurance 1100
Depreciation on cutting Machines 2130 7240
  
Conversion Cost (Prime Cost + Mfg OH) 55070
Add Administration Overheads
President's Salary 5040
Cost Of Production 60110
Selling Overheads
Company Advertising 1070
Depreciation for Salesperson's Vehicles 2180
Sales Commission 1210 4460
Total Product Cost (Cost of Prod. + Selling OH) 64570
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