Reference no: EM133171297
Question - Pretty Pillows, Mfg., manufactures silk throw pillows. Last month the company produced 3,890 pillows. The following incurred the following costs:
Production facility utilities, $1,600;
Depreciation on production equipment, $650;
Indirect materials, $400;
Direct materials, $5,300;
Indirect labor, $1,000;
Direct labor, $3,500;
Sales commissions, $4,000;
President's salary, $8,000;
Insurance on production facility, $1,000;
Advertising expense, $900;
Rent on production facility, $6,000;
Rent on sales office, $4,000;
Legal expense, $600.
WIP (beginning balance) $3,200
WIP (ending balance) $2,400
Required - Determine the PRIME COST of manufacturing the pillows.
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