The following information relates to Myer, Inc.: Advertising Costs $10,600 Sales Salary 10,000 Sales Revenue 500,000 President's Salary 230,000 Office...

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The following information relates to Myer, Inc.:
Advertising Costs $10,600
Sales Salary 10,000
Sales Revenue 500,000
President's Salary 230,000
Office Rent 60,500
Manufacturing Equipment Depreciation 1200
Indirect Materials Used 8000
Indirect Labor 13,000
Factory Repair and Maintenance 920
Direct Materials Used 27,500
Direct Labor 36,000
Delivery Vehicle Depreciation 1550
Administrative Salaries 22,000
Match cost with amount.
Column A
a.$413,380
b.$334650
c.$78,730
d.$63,500
e.$23,120
f.$86,620
g.$59,120
Column B
1. Period costs:
2. Prime costs:
3. Product costs:
4. Manufacturing Overhead:
5. Conversion costs:
6. Gross Profit:
7. Net Income:

Answer & Explanation Solved by verified expert

3.9 Ratings (663 Votes)

1) Period cost

Advertising Costs	10600
Sales salary	10000
President's Salary	230000
Office rent	60500
Delivery Vehicle Depreciation	1550
Administrative salaries	22000
Total period cost	334650

2) Prime cost = Direct material+Direct labor = 27500+36000 = 63500

3) Product cost

Prime cost	63500
Manufacturing Equipment Depreciation	1200
Indirect material	8000
Indirect labor	13000
Factory Repair and Maintenance	920
Total product cost	86620

4) Manufacturing overhead

Manufacturing Equipment Depreciation	1200
Indirect material	8000
Indirect labor	13000
Factory Repair and Maintenance	920
Total product cost	23120

5) Conversion Cost

Direct labor	36000
Manufacturing Equipment Depreciation	1200
Indirect material	8000
Indirect labor	13000
Factory Repair and Maintenance	920
Total product cost	59120

6) Gross profit = 500000-86620 = 413380

7) Net income = 413380-334650 = 78730

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The following information relates to Myer, Inc.:Advertising Costs $10,600Sales Salary 10,000Sales Revenue 500,000President's Salary 230,000Office Rent 60,500Manufacturing Equipment Depreciation 1200Indirect Materials Used 8000Indirect Labor 13,000Factory Repair and Maintenance 920Direct Materials Used 27,500Direct Labor 36,000Delivery Vehicle Depreciation 1550Administrative Salaries 22,000Match cost with amount. Column Aa.$413,380b.$334650c.$78,730d.$63,500e.$23,120f.$86,620g.$59,120Column B1. Period costs:2. Prime costs:3. Product costs:4. Manufacturing Overhead:5. Conversion costs:6. Gross Profit:7. Net Income: