Direct material $ 2,200,000

Advertising expense 98,000

Depreciation on factory building 115,000

Direct labor: wages 485,000

Cost of finished goods inventory at year-end 115,000

Indirect labor: wages 140,000

Production supervisor’s salary 47,000

Service department costs* 100,000

Direct labor: fringe benefits 95,000

Indirect labor: fringe benefits 31,000

Fringe benefits for production supervisor 10,000

Total overtime premiums paid 55,000

Cost of idle time: production employeesA?§ 40,000

Administrative costs 150,000

Rental of office space for sales personnelAc€ 15,000

Sales commissions 5,000

Product promotion costs $ 10,000

*All services are provided to manufacturing departments.

A?§Cost of idle time is an overhead item; it is not included in the direct-labor wages given above.

Ac€ The rental of sales space was made necessary when the sales offices were converted to storage space for raw material.

1.

Requirement 1:

Compute each of the following costs for the year just ended: (a) total prime costs, (b) total manufacturing overhead costs, (c) total conversion costs, (d) total product costs, and (e) total period costs. (Omit the “$” sign in your response.)

a. Total prime costs $

b. Total manufacturing overhead $

c. Total conversion costs $

d. Total product costs $

e. Total period costs