Answer:
1. $85,000
2. $132,750
3. $119,900
4. $217,750
5. $252,650
6. $96,130
Explanation:
1. The computation of direct labor cost is shown below:
= Wages paid to laborers
= $85,000
2. The computation of manufacturing overhead cost is shown below:
= Factory rent + Indirect production labor + Utilities for factory + Production supervisor's salary + Factory insurance + Depreciation on factory equipment
= $28,300 + $1,950 + $31,200 + $31,600 + $12,700 + $27,000
= $132,750
3. The computation of prime cost is shown below:
= Wages paid to laborers + Direct materials used
= $85,000 + $34,900
= $119,900
4. The computation of conversion cost is shown below:
= Wages paid to laborers + manufacturing overhead cost
= $85,000 + $132,750
= $217,750
5. The computation of total manufacturing cost is shown below:
= Prime cost + manufacturing overhead cost
= $119,900 + $132,750
= $252,650
6. The computation of period expenses is shown below:
= Company advertising + Depreciation for president's vehicle + President's salary + Sales commissions
= $20,200 + $8,100 + $60,200 + $7,630
= $96,130
