Question

Knight Company reports the following costs and expenses in May.

Factory utilities - $15,730 Direct labor $73,307
Depreciation on factory equipment - 14,740 Sales salaries - 48,473
Depreciation on delivery trucks - 4,256 Property taxes on factory building - 2,897
Indirect factory labor - 53,233 Repairs to office equipment - 2,073
Indirect materials - 83,496 Factory repairs - 2,174
Direct materials used - 139,417 Advertising - 16,515
Factory manager’s salary - 8,367 Office supplies used - 3,599
From the information, determine the total amount of:____________
a) Manufacturing Overhead - $180,637
b) Product Costs - ?????????????????
c) Peroid Costs - $74,916

Answer 1

a. $180,617

b. $393,341

c. $74,916

Step-by-step explanation:

a. Manufacturing Overhead = Factory utilities + depreciation on factory equipment + indirect factory labour + indirect materials + factory manager salary + property taxes on factory building + factory repairs

= 15,730 + 14,720 + 53,233 + 83,496 + 8,367 + 2,897 + 2,174

= $180,617‬

b. Product Costs = direct labour + direct material + manufacturing overhead

= 73,307 + 139,417 + 180,617

= $‭393,341‬

c. Period Costs = sales salaries + depreciation on delivery trucks + repairs to office equipment + advertising + office supplies used

= 48,473 + 4,256 + 2,073 + 16,515 + 3,599

= $74,916