In: Accounting
Quail Company builds snowboards. Quail Company has reported the following costs for the previous year. Assume no production inventories.
Cost of fiberglass (raw material) | $ | 94,000 |
Factory rent | $ | 49,000 |
Advertising | $ | 135,000 |
Utilities for factory | $ | 26,000 |
Wages of assembly workers | $ | 88,000 |
Production supervisor salary | $ | 50,000 |
Sales manager salary | $ | 34,000 |
Factory property taxes | $ | 29,000 |
Depreciation on production equipment | $ | 28,000 |
Cost of bindings (raw material) | $ | 23,000 |
Screws | $ | 2,500 |
Wages of snowboard painters | $ | 76,000 |
Wages for maintenance workers | $ | 31,000 |
a. Compute the direct material costs.
b. Compute the direct labor cost.
c. Compute the manufacturing overhead.
d. Compute the total manufacturing cost.
e. Compute the prime cost.
f. Compute the conversion cost.
g. Compute the total period cost.
a. Direct material cost: | |
Cost of fibreglass | 94000 |
Cost of bindings | 23000 |
Direct material cost | 117000 |
b. Direct labor cost: | |
Wages for assembly workers | 88000 |
Wages for snowboard painters | 76000 |
Direct labor cost | 164000 |
c. Manufacturing overhead: | |
Factory rent | 49000 |
Utilities for factory | 26000 |
Production supervisor salary | 50000 |
Factory property taxes | 29000 |
Depreciation on production equipment | 28000 |
Screws | 2500 |
Wages for maintenance workers | 31000 |
Manufacturing overhead | 215500 |
d. Total manufacturing cost | |
Direct material cost | 117000 |
Direct labor cost | 164000 |
Manufacturing overhead | 215500 |
Total manufacturing overhead | 496500 |
e. Prime cost | |
Direct material cost | 117000 |
Direct labor cost | 164000 |
Prime cost | 281000 |
f. Conversion cost | |
Direct labor cost | 164000 |
Manufacturing overhead | 215500 |
Conversion cost | 379500 |
g. Total period cost | |
Advertising | 135000 |
Sales manager's salary | 34000 |
Total period cost | 379500 |