Question

In: Accounting

Case Prime Cost Conversion Cost Direct Materials Direct Labor Manufacturing Overhead Total Manufacturing Cost A 9,480...

Case Prime Cost Conversion Cost Direct Materials Direct Labor Manufacturing Overhead Total Manufacturing Cost
A 9,480 16,460 4,040 11,020
B 10,010 7,330 25,200 42,540
C 55,700 110,300 42,300
D 48,150 19,900 11,750 68,050
E 14,000 24,300 56,200

For each of the following independent cases (A–E), compute the missing values in the table:

Solutions

Expert Solution

Formulas to be used while calculating the missing figures:

1) - Prime cost = Direct materials + Direct labor
2) - Conversion cost = Direct labor + Manufacturing overhead
3) - Total Manufacturing cost = Direct materials + Direct labor + Manufacturing overhead

Case A

Direct labor (using formula 1 above) = Prime cost - Direct materials = 9,480 - 4,040 = $5,440
Total manufacturing cost (using formula 3 above ) = Direct materials + Direct labor + Manufacturing overhead = 4,040 + 5,440 + 11,020 = 20,500

Case B

Prime cost (using formula 1 above ) = Direct materials + Direct labor = 10,010 + 7,330 = 17,340
Conversion cost ( using formula 2 above ) = Direct labor + Manufacturing overhead = 7,330 + 25,200 = 32,530

Case C

Direct labor ( using formula 1 above ) = Prime cost - Direct materials = 55,700 - 42,300 = 13,400
Manufacturing overhead ( using formula 2 above ) = Conversion cost - Direct labor = 110,300 - 13,400 = 96,900
Total Manufacturing cost = Direct materials + Direct labor + Manufacturing overhead = 42,300 + 13,400 + 96,900 = 152,600

Case D

Prime cost ( using formula 1 above ) = Direct materials + Direct labor = 19,900 + 11,750 = 31,650
Manufacturing overhead ( using formula 2 above ) = Conversion cost - Direct labor = 48,150 - 11,750 = 36,400

Case E

Direct materials ( using formula 3 above ) = Total manufacturing cost - Direct labor - Manufacturing overhead = 56,200 - 14,000 - 24,300 = 17,900
Prime cost ( using formula 1 above ) = Direct materials + Direct labor = 17,900 + 14,000 = 31,900
Conversion cost ( using formula 2 above ) = Direct labor + Manufacturing overhead = 14,000 + 24,300 = 38,300

Case Prime cost Conversion cost Direct materials Direct labor Manufacturing overhead Total manufacturing cost
A 9,480 16,460 4,040 5,440 11,020 20,500
B 17,340 32,530 10,010 7,330 25,200 42,540
C 55,700 110,300 42,300 13,400 96,900 152,600
D 31,650 48,150 19,900 11,750 36,400 68,050
E 31,900 38,300 17,900 14,000 24,300 56,200

ekkarill92 answered 1 year ago
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