h2 (a) Prime cost = Direct materials used + Direct labor $100,000+ $150,000 $250,000 (b) Conversion cost = Direct labor + Factory overhead $150,000+ $75,000 = $225,000 (c) Direct cost = Direct materials used + Direct labor + 50% of selling and administrative expenses - $100,000+ $150,000 + $60,000 - $310,000 (d) Indirect cost - 100% of factory overhead 50% of selling and administrative expenses = $75,000+ $60,000 = $135.000 (e) Product costs = Direct materials used + Direct labor+ Factory overhead = $100,000+ $150,000+ $75,000 = $325,000 Period expenses = Selling and administrative expenses = $120,000 (8) Variable cost = Direct materials used + Direct labor + 40% of factory overhead +60% of selling and administrative expenses = $100,000+ $150,000+ $30,000+ $72,000 = $352.000 Fixed cost -60% factory overhead + 40% of selling and administrative expenses = $45,000+ $48.000 = $93.000 2.10 Selected data concerning the past fiscal year's operations (000 omitted) of the Televans Manufacturing Company are presented below. Inventories Beginning Ending Direct materials $75 $ 85 Work-in-process 80 30 Finished goods 90 110 Other data: Direct materials used 326 Total manufacturing costs charged to production during the year (includes direct materials, direct labor, and factory overhead applied at a rate of 60% of direct labor cost) 686 Cost of goods available for sale 826 Selling and general expenses 25 1. The cost of direct materials purchased during the year amounted to (a) $411 (d) $336 () $360 (e) Some amount other than those shown above (c) $316 2. Direct labor costs charged to production during the year amounted to (a) $135 (d) $216 (b) $225 (e) Some amount other than those shown above (c) $360 3. The cost of goods manufactured during the year was (a) $636 (d) $716 (b) $766 (e) Some amount other than those shown above (c) $736 4. The cost of goods sold during the year was (a) $736 (d) $805 (b) $716 (e) Some amount other than those shown above (c) $691