Question
In: Accounting
Mariposa Manufacturing builds custom wooden cabinets. Mariposa Manufacturing has reported the following costs for the previous...
Mariposa Manufacturing builds custom wooden cabinets. Mariposa Manufacturing has reported the following costs for the previous year. Assume no production inventories.
| Advertising | $ | 35,400 |
| Cost of hardware (slides, handles, etc) | $ | 34,300 |
| Cost of wood | $ | 116,800 |
| Depreciation on production equipment | $ | 32,000 |
| Factory property taxes | $ | 18,200 |
| Factory rent | $ | 39,300 |
| Glue | $ | 3,770 |
| Production supervisor salary | $ | 40,900 |
| Sales manager salary | $ | 40,100 |
| Utilities for factory | $ | 23,900 |
| Wages for maintenance workers | $ | 32,000 |
| Wages of assembly workers | $ | 92,100 |
| Wages of finishing workers | $ | 77,100 |
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.
Solutions
Expert Solution
Answer:
| a) | Direct material cost | 151100 | |||||
| cost of hardware | (slides,handles ,etc) | 34300 | |||||
| cost of wood | 116800 | ||||||
| 151100 | |||||||
| b) | Direct labor cost | 169200 | |||||
| wages of assembly workers | 92100 | ||||||
| Wages of finishing workers | 77100 | ||||||
| 169200 | |||||||
| c) | Manufacturing overhead | 190070 | |||||
| Depreciation on production equipment | 32000 | ||||||
| Factory property taxes | 18200 | ||||||
| Factory rent | 39300 | ||||||
| Glue | 3770 | ||||||
| production supervisory salary | 40900 | ||||||
| utilities for factory | 23900 | ||||||
| Wages for maintenance workers | 32000 | ||||||
| manufacturing overhead | 190070 | ||||||
| d) | total manufacturing cost | 510370 | |||||
| (DM+DL+MOH) | |||||||
| e) | Prime cost | 320300 | |||||
| (DM+DL) | |||||||
| f) | Conversion cost | 359270 | |||||
| (DL+MOH) | |||||||
| g) | Total period cost | 75500 | |||||
| Advertising | 35400 | ||||||
| Sales manager salary | 40100 | ||||||
| 75500 | |||||||
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