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Business, 27.01.2020 23:31 Tcareyoliver

The following cost data for the year just ended pertain to sentiments, inc., a greeting card manufacturer:

direct material $2,100,000
advertising expense 98,000
depreciation on factory building 116,000
direct labor: wages 490,000
cost of finished goods inventory at year-end 115,000
indirect labor: wages 141,000
production supervisor's salary 47,000
service department costs^ 100,000
direct labor: fringe benefits 106,000
indirect labor: fringe benefits 31,000
fringe benefits for production supervisor 10,000
total overtime premiums paid 55,000
cost of idle time: production employees 40,000
administrative costs 150,000
rental of office space for sales personnel 15,000
sales commissions 5,000
product promotion costs 10,000
^all services are provided to manufacturing departments. cost of idle time is an overhead item; it is not included in the direct-labor wages given above.

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

required:

compute each of the following costs for the year just ended:

1)total prime costs

2)total manufacturing overhead costs

3)total conversion costs

4)total product costs

5)total period costs

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Answers: 2

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