Reference no: EM132653829
The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer:
Direct material $2,100,000
Advertising expense $97,000
Depreciation on factory building $115,000
Direct labor: wages #545,000
Cost of finished goods inventory at year-end $115,000
Indirect labor: wages $140,000
Production supervisor's salary $46,000
Service department costs* $100,000
Direct labor: fringe benefits $97,000
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 $4,000
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:
Problem 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?
e. Total period costs?