Cotton white, inc., makes specialty clothing for chefs. the company reported the following costs for 2015:
factory rent $ 37,700
company advertising 25,500
wages paid to seamstresses 76,800
depreciation on salespersons' vehicles 30,600
thread 1,030
utilities for factory 24,700
cutting room supervisor's salary 30,300
president’s salary 76,500
premium quality cotton material 40,200
buttons 835
factory insurance 18,500
depreciation on sewing machines 7,400
wages paid to cutters 50,000
required:
1. compute the cost of direct materials for cotton white.
2. compute the cost of direct labor for cotton white.
3. compute the cost of manufacturing overhead for cotton white.
4. compute the total manufacturing cost for cotton white.
5. compute the prime cost for cotton white.
6. compute the conversion cost for cotton white.
7. compute the total period cost for cotton white.

Instruction are listed below

Explanation:

A) Cost of raw materials:

Cost of raw materials= Thread  + Premium quality cotton material  + Buttons= 1030 + 40200 + 835 = $42065

B) Direct labor= Wages paid to seamstresses  + Cutting room supervisor's salary  + Wages paid to cutters= 76800 + 30300 + 50000= $157100

C) Cost of manufacturing overhead= Factory rent + Utilities for factory  + Factory insurance  + Depreciation on sewing machines= 37700 + 24700 + 18500 + 7400= $88300

Expenses that are outside of the manufacturing facilities, such as selling, general and administrative expenses, are not product costs. They are reported as expenses on the income statement in the accounting period in which they occur.

D) total manufacturing cost= 42065 + 157100 + 88300= $287465

E) prime cost= direct materials + direct labor = 42065 + 157100= 199165

F) conversion cost= direct labor + manufactirng overhead= 157100 + 88300= 245400

G) Total period cost= Company advertising + Depreciation on salespersons' vehicles  + President’s salary = 25500 + 30600 + 76500 = $132600

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the correct answer is - no.

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