1.Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018:...
1.Cotton White, Inc., makes specialty clothing for chefs. The
company reported the following costs for 2018:
| Factory rent | $ | 38,000 | |
| Company advertising | 25,100 | ||
| Wages paid to seamstresses | 77,000 | ||
| Depreciation on salespersons' vehicles | 31,700 | ||
| Thread | 1,170 | ||
| Utilities for factory | 24,400 | ||
| Cutting room supervisor's salary | 30,700 | ||
| President’s salary | 75,200 | ||
| Premium quality cotton material | 42,000 | ||
| Buttons | 800 | ||
| Factory insurance | 18,900 | ||
| Depreciation on sewing machines | 6,000 | ||
| Wages paid to cutters | 51,000 | ||
Required:
1. Compute the cost of direct materials for Cotton
White.
2. Compute the cost of direct labor for Cotton
White.
3. Compute the cost of manufacturing overhead for
Cotton White.
4. Compute the total manufacturing cost for Cotton
White.
5. Compute the prime cost for Cotton White.
6. Compute the conversion cost for Cotton
White.
7. Compute the total period cost for Cotton
White.
2.
Noteworthy, Inc., produces and sells small electronic keyboards.
Assume that you have the following information about Noteworthy’s
costs for the most recent month.
| Depreciation on factory equipment | $ | 980 | |
| Depreciation on CEO's company car | 210 | ||
| Speakers used in the keyboard | 1,220 | ||
| Production supervisor's salary | 2,240 | ||
| Glue and screws used in the keyboards | 250 | ||
| Wages of persons who install the speakers | 2,960 | ||
| Cost to run an ad on local radio stations | 650 | ||
| Utilities for the factory | 1,310 | ||
| Personnel manager's salary | 2,550 | ||
| Wages of person who attaches legs to keyboards | 2,100 | ||
Required:
1. Calculate the total product cost for Noteworthy.
2. Calculate the prime cost for Noteworthy.
3. Calculate the manufacturing overhead for Noteworthy.
4. Calculate the direct labor for Noteworthy.
5. Calculate the conversion cost for Noteworthy.
6. Calculate the total variable cost (with number of units produced as the activity) for Noteworthy.
7. Calculate the total fixed cost (with number of units produced as the activity) for Noteworthy.
Homework Answers
1. Compute the cost of direct materials for Cotton White.:
Thread: 1,170
Premium quality cotton material::42,000
Buttons :800
Cost of Direct Materials=1170+42000+800=$43,970
2. Compute the cost of direct labor for Cotton White
Wages paid to seamstresses=77,000
Wages paid to cutters::51,000
Cost of Direct Labor=77000+51000=$128,000
3. Compute the cost of manufacturing overhead for Cotton White.
Factory rent:38,000
Utilities for factory: 24,400
Cutting room supervisor's salary:30,700
Factory insurance:18,900
Depreciation on sewing machines:6000
Cost of Manufacturing Overhead=38000+24400+30700+18900+6000=$118,000
4. Compute the total manufacturing cost for Cotton White
Direct Materials Cost:=$43970
Direct Labor Cost=$128000
Manufacturing Overhead Cost=$118000
Total Manufacturing Cost =43970+128000+118000=$289,970
5. Compute the prime cost for Cotton White
Prime Cost =Direct Material cost+Direct Labor Cost=43970+128000=$171,970
6. Compute the conversion cost for Cotton White.
Conversion Cost =Direct Labor Cost+Manufacturing Overhead Cost =128000+118000=$246,000
7. Compute the total period cost for Cotton White.
Company advertising=25100
Depreciation on salespersons' vehicles=31700
President’s salary=75200
Total Period Cost =25100+31700+75200=$132,000
Add Answer to:
1.Cotton White, Inc., makes specialty clothing for chefs. The
company reported the following costs for 2018:...
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015:...
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015: Factory rent $ 36,300 Company advertising 24,600 Wages paid to seamstresses 76,500 Depreciation on salespersons' vehicles 30,500 Thread 1,030 Utilities for factory 23,400 Cutting room supervisor's salary 31,000 President’s salary 75,900 Premium quality cotton material 40,100 Buttons 780 Factory insurance 19,700 Depreciation on sewing machines 7,200 Wages paid to cutters 51,900 1. Compute the cost of direct materials for Cotton White. 2. Compute the...
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015:...
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015: Factory rent $ 37,200 Company advertising 24,800 Wages paid to seamstresses 76,800 Depreciation on salespersons' vehicles 30,600 Thread 1,130 Utilities for factory 23,100 Cutting room supervisor's salary 30,100 President’s salary 75,300 Premium quality cotton material 40,300 Buttons 830 Factory insurance 18,300 Depreciation on sewing machines 7,300 Wages paid to cutters 50,900 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute...
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015:...
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015: Factory rent $ 36,300 Company advertising 24,500 Wages paid to seamstresses 76,200 Depreciation on salespersons' vehicles 31,200 Thread 1,060 Utilities for factory 24,400 Cutting room supervisor's salary 30,100 President’s salary 76,900 Premium quality cotton material 41,000 Buttons 840 Factory insurance 18,900 Depreciation on sewing machines 7,700 Wages paid to cutters 50,200 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute...
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Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: Factory rent Company advertising Wages paid to seamstresses Depreciation on salespersons vehicles Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters $ 36,990 24,500 76,000 31,600 1,120 23,500 31,500 76,100 41,300 775 18,800 7,400 50,500 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute...
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015:...
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015: $ Factory rent Company advertising Wages paid to seamstresses Depreciation on salespersons' vehicles Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters 36,300 24,500 76,200 31,200 1,060 24,400 30,100 76,900 41,000 840 18,900 7,700 50,200 Required: 1. Compute the cost of direct materials for Cotton White. Direct Materials...
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otton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015: Factory rent $ 37,800 Company advertising 25,300 Wages paid to seamstresses 75,500 Depreciation on salespersons' vehicles 30,900 Thread 1,150 Utilities for factory 24,700 Cutting room supervisor's salary 30,300 President’s salary 76,200 Premium quality cotton material 40,800 Buttons 805 Factory insurance 18,800 Depreciation on sewing machines 6,900 Wages paid to cutters 51,200 1. Compute the cost of direct materials for Cotton White. 2. Compute the...
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015:...
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Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015:...
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015: Factory rent Company advertising Wages paid to seamstresses Depreciation on salespersons' vehicles Thread Utilities for factory Cutting room supervisors salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters S 37,000 25,600 75,500 30,800 1,030 23,400 30,700 76,100 40,300 750 19,800 6,400 51,900 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute...
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Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about...
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Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: Factory rent Company advertising Wages paid to seamstresses Depreciation on salespersons vehicles Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters $ 36,990 24,500 76,000 31,600 1,120 23,500 31,500 76,100 41,300 775 18,800 7,400 50,500 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute...
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Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015: Factory rent Company advertising Wages paid to seamstresses Depreciation on salespersons' vehicles Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters $36,800 25,200 76,500 32,000 1,100 23,100 31,400 76,500 40,600 775 18,500 7,000 50,400 Required: 1. Compute the cost of direct materials for Cotton White. 10YU. 1. Compute...
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015: Factory rent Company advertising Wages paid to seamstresses Depreciation on salespersons' vehicles Thread Utilities for factory Cutting room supervisors salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters S 37,000 25,600 75,500 30,800 1,030 23,400 30,700 76,100 40,300 750 19,800 6,400 51,900 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute...
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