Question

Mariposa Manufacturing builds custom wooden cabinets. Mariposa Manufacturing has reported the following costs for the previous year. Assume no production inventories. Advertising $ 35,300 Cost of hardware (slides, handles, etc) $ 33,800 Cost of wood $ 116,100 Depreciation on production equipment $ 31,700 Factory property taxes $ 17,100 Factory rent $ 38,900 Glue $ 3,840 Production supervisor salary $ 42,000 Sales manager salary $ 41,900 Utilities for factory $ 24,000 Wages for maintenance workers $ 31,500 Wages of assembly workers $ 91,500 Wages of finishing workers $ 77,800 a. Compute the direct material costs.

Answer 1

Answer:

The Direct Material Costs =$ 153,740

Explanation:

Mariposa Manufacturing

Direct Material Costs are those costs that are directly used in the manufacture of the product. In manufacturing wooden cabinets , wood and hardware(slides, handles, etc) are used directly. So  

The Direct Material Costs = Cost of hardware (slides, handles, etc) $ 33,800

+ Cost of wood $ 116,100 + Glue** = $ 149,900 +$ 3,840 = $ 153,740

In certain cases glue is considered an indirect material but in some it is a direct material.

WORKING:

Cost of hardware (slides, handles, etc) $ 33,800

Cost of wood $ 116,100

Depreciation on production equipment $ 31,700  (FOH)

Factory property taxes $ 17,100  (FOH)

Factory rent $ 38,900  (FOH)

Glue $ 3,840

Production supervisor salary $ 42,000  (FOH)

Sales manager salary $ 41,900

Utilities for factory $ 24,000  (FOH)

Wages for maintenance workers $ 31,500

Wages of assembly workers $ 91,500

Wages of finishing workers $ 77,800

Advertising $ 35,300