Question

Exercise 15-4 Knight Company reports the following costs and expenses in May. Factory utilities Depreciation on factory equipment $16,100 14,350 $70,000 50,400 4,000 Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising Office supplies used Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory manager's salary 3,000 50,200 85,300 139,700 8,700 1,900 3,030 16,000 3,580 From the information:

Answer 1

Manufacturing Overhead Product Cost Period Cost $ 180,680 $ 390,380 $ 75,880 Working Notes: Manufacturing Overhead Particulars Amount (S) Factory Utilities $ 16,100 Depreciation on Factory equipment $ 14,350 Indirect Factory labor $ 50,200 Indirect Materials $ 85,300 Factory manager's salary $ 8,700 Property taxes on factory building S 3,000 factory repairs $ 3,030 Total $ 180,680 Product Costs Particulars Direct Materials used Direct Labour Manufacturing Overhead Amount (5) $ 139,700 $ 70,000 $ 180,680 Total $ 390,380

Period Costs Particulars Amount () Depreciation on delivery trucks S 4,000 Sales salaries $ 50,400 Repairs to the office equipment S 1,900 Advertising $ 16,000 Office Supplies Used $ 3,580 Total $ 75,880