Question

The following information is available for Wonderway, Inc., for 2015:

Factory rent $28,700
Company advertising 19,900
Wages paid to laborers 83,600
Depreciation for president's vehicle 8,050
Indirect production labor 1,990
Utilities for factory 31,400
Production supervisor's salary 31,600
President's salary 61,300
Direct materials used 35,600
Sales commissions 7,640
Factory insurance 13,600
Depreciation on factory equipment 28,000

Required:
a. Calculate the direct labor cost for Wonderway.
b. Calculate the manufacturing overhead cost for Wonderway.
c. Calculate the prime cost for Wonderway.
d. Calculate the conversion cost for Wonderway.
e. Calculate the total manufacturing cost for Wonderway.
f. Calculate the period expenses for Wonderway.

Answer 1

a. $81,610

b. $135,290

c. $117,200

d. $216,900

e. $252,490

f. $96,890

Step-by-step explanation:

direct labor cost = $83,600 - $1,990 = $81,610

manufacturing overhead cost = $28,700 + $1,990 + 31,400 + $31,600 + $13,600 + 28,000 = $135,290

prime cost = $35,600 + $81,610 = $117,200

conversion cost = $81,610 + $135,290 = $216,900

total manufacturing cost = $135,290 + $117,200 = $252,490

period expenses = $19,900 + $8,050 + $61,300 + $7,640 = $96,890