Assignment Print View3 - 2015\/2\/3 AssignmentPrintView Score 17.64outof50points(35.28[ ,Inc, Directlabor:w

Assignment Print View3 - 2015/2/3 AssignmentPrintView...

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Unformatted text preview: 2015/2/3 Assignment Print View Score: 17.64 out of 50 points (35.28%) [The following information applies to the questions displayed below.] The following cost data for the year just ended pertain to Heartstrings, Inc., a greeting card manufacturer: Service department costs* Direct labor: wages 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 Direct material used Advertising expense Depreciation on factory building Cost of finished­goods inventory at year­end Indirect labor: wages Production supervisor’s salary 100,000 545,000 97,000 31,000 10,000 55,000 40,000 150,000 15,000 5,000 10,000 2,200,000 99,000 115,000 115,000 142,000 $ 45,000 $ *All services are provided to manufacturing departments. §Cost of idle item is an overhead item; it is not included in direct­labor wages given above. †The rental of sales space was made necessary when the sales offices were converted to storage space for raw material. 8. award: 0 out of 2.94 points Required: 1. Compute each of the following costs for the year just ended: a. Total prime costs b. Total manufacturing overhead costs c. Total conversion costs d. Total product costs e. Total period costs Problem Learning Objective: 02­05 Give examples of three types of 1/3 2015/2/3 Assignment Print View manufacturing costs. Learning Objective: 02­02 Distinguish among product costs, period costs, and expenses. Learning Objective: 02­10 Define and give examples of an opportunity cost, an out­of­pocket cost, a sunk cost, a differential cost, a marginal cost, and an average cost. Required: 1. Compute each of the following costs for the year just ended: a. Total prime costs $ 2,842,000 b. Total manufacturing overhead costs $ 538,000 c. Total conversion costs $ 1,180,000 d. Total product costs $ 3,380,000 e. Total period costs $ 279,000 Explanation: 1. a. Total prime costs: Direct material Direct labor: Wages Fringe benefits Total prime costs b. Total manufacturing overhead: Depreciation on factory building Indirect labor: wages Production supervisor's salary Service department costs Indirect labor: fringe benefits Fringe benefits for production supervisor Total overtime premiums paid Cost of idle time: production employees Total manufacturing overhead c. Total conversion costs: Direct labor ($545,000 + $97,000) Manufacturing overhead Total conversion costs d. Total product costs: Direct material Direct labor Manufacturing overhead Total product costs e. Total period costs: $ 2,200,000 545,000 97,000 $ 2,842,000 $ 115,000 142,000 45,000 100,000 31,000 10,000 55,000 40,000 $ 538,000 $ 642,000 538,000 $ 1,180,000 $ 2,200,000 642,000 538,000 $ 3,380,000 2/3 2015/2/3 AssignmentPrint View Advertising expense Administrative costs Rental of office space for sales personnel Sales commissions Product promotion costs Total period costs $ 99,000 150,000 15,000 5,000 10,000 $ 279,000 9. award: 2.94 out of 2.94 points 2. One of the costs listed below is an opportunity cost. Identify this cost. Sales commissions Rental of office space for sales personnel Product promotion costs Administrative costs Direct labor: fringe benefits Cost of finished­goods inventory at year­end The $15,000 in rental cost for sales office space is an opportunity cost. It measures the opportunity cost of using the former sales office space for raw­material storage. Multiple Choice Learning Objective: 02­05 Give examples of three types of manufacturing costs. Learning Objective: 02­02 Distinguish among product costs, period costs, and expenses. Learning Objective: 02­10 Define and give examples of an opportunity cost, an out­of­pocket cost, a sunk cost, a differential cost, a marginal cost, and an average cost. 3/3 ...
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  • Spring '15
  • production supervisor, total period costs

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