Part 1. Arcadia Company manufactures recreational vehicles and incurred the following costs during the current year.

Required: Classify each cost using the table format given below:

Product Cost Period Cost

Direct Materials Direct Labor Overhead Selling Expense Administrative Expense

1. Wages of general office personnel

2. Cost of tires

3. Factory supervisor's salary

4. Conference for marketing personnel

5. Factory security guards

6. Research and development

7. Assembly line workers

8. Company receptionist

9. Advertising cost

10. Cost of shipping vehicles to customers

Part 2. The Bayou Company makes crab pots. During the current month, direct materials costing $126,000 were put into production. Direct labor of $78,000 was incurred and overhead equaled $84,000. Selling and administrative expenses totaled $66,000 for the month and the company manufactured 3,000 crab pots. Assume there was no beginning inventory and that 2,800 crab pots were sold.

Required:

A. Compute the per-unit product cost

B. Compute the per-unit prime cost

C. Compute the per-unit conversion cost

D. What is cost of goods sold for the month?

E. What is the cost of ending finished goods for the month?

Part 3. The Blanchett Company manufactures fishing rods. Last year, direct materials costing $516,000 were put into production. Direct labor of $430,000 was incurred and overhead equaled $645,000. The company had operating income for the year of $58,000 and manufactured and sold 86,000 fishing rods at a sales price of $21 per unit. Assume that there were no beginning or ending inventory balances in the work in process and finished goods inventory accounts.

Required:

A. Compute the per-unit product cost

B. Compute the per-unit prime cost

C. Compute the per-unit conversion cost

D. Compute the gross margin for the year

E. Compute the selling and administrative expenses for the year

F. Assume production amounted to 86,000 fishing rods and 80,000 were sold. Compute cost of goods sold. G. Assume production amounted to 86,000 fishing rods and 80,000 were sold. Compute the balance in ending finished goods inventory.