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