Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: Factory

Question:

Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018:

Factory rent ............................................................................... $42,000
Company advertising ................................................................. 18,000
Wages paid to seamstresses ..................................................... 75,000
Depreciation on salespersons’ vehicles ................................... 25,000
Thread ............................................................................................ 1,000
Utilities for factory ...................................................................... 22,000
Cutting room supervisor’s salary .............................................. 30,000
President’s salary ........................................................................ 75,000
Premium quality cotton material .............................................. 42,000
Buttons .............................................................................................. 750
Factory insurance ........................................................................ 15,000
Depreciation on sewing machines .............................................. 6,000
Wages paid to cutters ................................................................. 50,000


Required:

Compute the following for Cotton White:

1. Direct materials.

2. Direct labor.

3. Manufacturing overhead.

4. Total manufacturing cost.

5. Prime cost.

6. Conversion cost.

7. Total period cost.

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-1260413984

4th edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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