Answer:
1) Direct materials=$43070
2)Direct labor=$126300
3)Manufacture overhead=$117600
4)Total manufacturing cost=$286970
5)Prime cost=$169370
6)Conversion costs = 126300+117600= $243900
7)Total period cost= $418670
Explanation:
The company reported the following costs for 2018:
1) Direct materials
Thread 1,020
Premium quality cotton material 41,300
Buttons 750
Total= $43070
2)Direct labor
Wages paid to seamstresses 76,200
Wages paid to cutters 50,100
Total= $126300
3) Manufacture overhead
Factory rent $ 36,100
Utilities for factory 24,600
Cutting room supervisor's salary 31,300
Factory insurance 19,100
Depreciation on sewing machines 6,500
Total= $117600
Notice that marketing, Depreciation on salespersons' vehicles and president's salary are not part of manufacturing overhead.
4)Total manufacturing cost=$43070+126300+117600=$286970
5)Prime cost= direct material + direct labor=43070+126300=$169370
6)Conversion costs = Direct labor + Manufacturing overhead= 126300+117600= $243900
7)Total period cost= manufacturing cost + Company advertising + Depreciation on salespersons' vehicles + President’s salary
Total period cost= 286970 + 24200 + 30600 + 76900= $418670
