Question

The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer: Direct material Advertising expense Depreciation on factory building Direct labor: wages Cost of finished goods inventory at year-end Indirect labor! wages Production supervisor's salary Service department costs Direct labor: fringe benefits Indirect labor: fringe benefits Fringe benefits for production supervisor Total overtime premiums paid Cost of idle time: production employees Administrative costs Rental of office space for sales personnel Sales commissions Product promotion costs $2,300,000 97,000 116,000 465,000 115,000 142,000 47,000 100,000 103,000 30,000 10,000 55,000 40,000 150,000 15,000 5,000 10,000 *All services are provided to manufacturing departments. Cost of idle time is an overhead item; it is not included in the direct labor wages given above. The rental of sales space was made necessary when the sales offices were converted to storage space for raw materia Problem 2-42 Part 1 Required: 1. Compute each of the following costs for the year just ended: a. Total prime costs 1 $ 2,868,000

I continue to get $309,000 for period costs but that isn't correct. the only cost i know that us right is the total prime cost.

Answer 1

The following cost data for the year just ended pertaning to Sentiments inc
		Amnt($)
Direct Material		23,00,000
Direct Labour wages	4,65,000
Fringe benefits for Direct Labour
	1,03,000	5,68,000
Prime cost		28,68,000
Manufacturing Overhead		Amnt($)
Indirect labour Wages		1,42,000
Depreciaiton of factory building		1,16,000
Service department cost		1,00,000
Total Overhead premium		55,000
Production Supervisor salary		47,000
Cost of idle time -Production employees		40,000
Indirect labour Fringe benefit		30,000
Fringe benefits for Production Supervisor		10,000
Manufacturing Overhead Cost		5,40,000
Conversion cost		Amnt($)
Direct labour cost ( as above)		5,68,000
Add = Manufacturing OH		5,40,000
Conversion cost Total		11,08,000
Production cost		Amnt($)
Prime cost as above		28,68,000
Add = Manufacturing OH		5,40,000
Production cost Total		34,08,000
Period cost		Amnt($)
administration cost		1,50,000
Adverising expenses		97,000
Rental of office space for Sales personnel		15,000
Product Promotion cost		10,000
Sales commission		5,000
Period cost Total		2,77,000