Question

In: Accounting

The following information relates to Myer, Inc.: Advertising Costs $10,600 Sales Salary 10,000 Sales Revenue 500,000...

The following information relates to Myer, Inc.:

Advertising Costs $10,600

Sales Salary 10,000

Sales Revenue 500,000

President's Salary 230,000

Office Rent 60,500

Manufacturing Equipment Depreciation 1200

Indirect Materials Used 8000

Indirect Labor 13,000

Factory Repair and Maintenance 920

Direct Materials Used 27,500

Direct Labor 36,000

Delivery Vehicle Depreciation 1550

Administrative Salaries 22,000

Match cost with amount.

Column A

a.$413,380

b.$334650

c.$78,730

d.$63,500

e.$23,120

f.$86,620

g.$59,120

Column B

1. Period costs:

2. Prime costs:

3. Product costs:

4. Manufacturing Overhead:

5. Conversion costs:

6. Gross Profit:

7. Net Income:

Solutions

Expert Solution

1) Period cost

Advertising Costs	10600
Sales salary	10000
President's Salary	230000
Office rent	60500
Delivery Vehicle Depreciation	1550
Administrative salaries	22000
Total period cost	334650

2) Prime cost = Direct material+Direct labor = 27500+36000 = 63500

3) Product cost

Prime cost	63500
Manufacturing Equipment Depreciation	1200
Indirect material	8000
Indirect labor	13000
Factory Repair and Maintenance	920
Total product cost	86620

4) Manufacturing overhead

Manufacturing Equipment Depreciation	1200
Indirect material	8000
Indirect labor	13000
Factory Repair and Maintenance	920
Total product cost	23120

5) Conversion Cost

Direct labor	36000
Manufacturing Equipment Depreciation	1200
Indirect material	8000
Indirect labor	13000
Factory Repair and Maintenance	920
Total product cost	59120

6) Gross profit = 500000-86620 = 413380

7) Net income = 413380-334650 = 78730

ekkarill92 answered 7 months ago

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