Answer:
(a) Manufacturing overhead = $182,820
(b) Product costs = $391,420
(c) Period costs = $72,670
Explanation:
a. The computation of the manufacturing overhead is shown below:
= Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs+ Factory manager salary
= $16,800+ $14,350 + $3,500 + $52,500 + $84,300 + $2,970 + $8,400
= $182,820
b. The computation of the product cost is shown below:
= Direct materials used + Direct labor + manufacturing overhead
= $138,700 + $72,600 + $182,820
= $391,420
c. The computation of the period cost is shown below:
= Sales salaries + Depreciation on delivery trucks + Repairs to office equipment + Advertising + Office supplies used
= $46,700 + $4,200 + $1,700 + $16,700 + $3,370
= $72,670
