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2. ) E2-4A. Prime Cost and Conversion Cost Piper Consulting Company incurred the following during 2016: Direct labor . . . . . . .

2. ) E2-4A. Prime Cost and Conversion Cost Piper Consulting Company incurred the following during 2016:

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,000

Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000

Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000

Calculate prime cost and conversion cost for Piper Consulting Company during 2016.

A B C

Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 600 $ 700 $ 900

Factory insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 270 300

Ending finished goods inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 620 660 930

Non-factory administrative expenses. . . . . . . . . . . . . . . . . . . . . . . . . .300 400 800

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,130 2,850 3,160

Beginning materials inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425 575 850

Beginning work in process inventory . . . . . . . . . . . . . . . . . . . . . . . . . 840 920 1,290

Indirect material used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270 325 520

Factory utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .350 360 500

Factory depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .820 740 965

Ending work in process inventory . . . . . . . . . . . . . . . . . . . . . . . . . . 790 985 1,425

Ending materials inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385 610 820

Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 410 365

Beginning finished goods inventory . . . . . . . . . . . . . . . . . . . . . . . . . .565 680 950

Factory repairs and maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . 330 250 415

Net delivered cost of materials purchased. . . . . . . . . . . . . . . . . . . . .. 2,780 3,620 8,170

Factory supplies used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210 230 260

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