The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card...

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Accounting

The following cost data for the year just ended pertain toSentiments, Inc., a greeting card manufacturer:
Direct material $ 2,200,000
Advertising expense 98,000
Depreciation on factorybuilding 115,000
Direct labor: wages 535,000
Cost of finished goods inventoryat year-end 115,000
Indirect labor: wages 142,000
Production supervisor’ssalary 47,000
Service department costs* 100,000
Direct labor: fringebenefits 99,000
Indirect labor: fringebenefits 30,000
Fringe benefits for productionsupervisor 11,000
Total overtime premiumspaid 55,000
Cost of idle time: productionemployees^§ 40,000
Administrative costs 150,000
Rental of office space for salespersonnel^† 15,000
Sales commissions 6,000
Product promotion costs 10,000
*All services are provided to manufacturing departments.
§Cost of idle time is an overhead item; it is not included inthe direct-labor wages given above.
The rental of sales space was made necessary when the salesoffices were converted to storage space for raw material.
Compute each of the following costs for the year just ended
a.Total prime cost
Total manufacturing overhead costs
Total conversion costs
Totalproduct costs
Totalperiod costs

Answer & Explanation Solved by verified expert

4.4 Ratings (669 Votes)

a Total Primecost Direct materials 2200000 Direct Labour Wages 535000 Fringe benifits 99000 634000 2854000 Total Manufacturing Overheads Depreciation on Factory building 115000 Indirect labour Wages 142000 Fringe benifits See Answer

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Direct material	$	2,200,000
Advertising expense		98,000
Depreciation on factorybuilding		115,000
Direct labor: wages		535,000
Cost of finished goods inventoryat year-end		115,000
Indirect labor: wages		142,000
Production supervisor’ssalary		47,000
Service department costs*		100,000
Direct labor: fringebenefits		99,000
Indirect labor: fringebenefits		30,000
Fringe benefits for productionsupervisor		11,000
Total overtime premiumspaid		55,000
Cost of idle time: productionemployees^§		40,000
Administrative costs		150,000
Rental of office space for salespersonnel^†		15,000
Sales commissions		6,000
Product promotion costs		10,000