Problem 2-42 Cost Terminology (LO 2-2, 2-5, 2-10)

[The following information applies to the questions displayed below.]

The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer:

Direct material	$	2,200,000
Advertising expense		98,000
Depreciation on factory building		115,000
Direct labor: wages		550,000
Cost of finished goods inventory at year-end		115,000
Indirect labor: wages		142,000
Production supervisors salary		47,000
Service department costs*		100,000
Direct labor: fringe benefits		117,000
Indirect labor: fringe benefits		30,000
Fringe benefits for production supervisor		10,000
Total overtime premiums paid		55,000
Cost of idle time: production employees		40,000
Administrative costs		150,000
Rental of office space for sales personnel		15,000
Sales commissions		5,000
Product promotion costs		10,000

*All services are provided to manufacturing departments.

Cost of idle time is an overhead item; it is not included in the direct-labor wages given above.

The rental of sales space was made necessary when the sales offices were converted to storage space for raw material.

Problem 2-42 Part 1

Required: 1. Compute each of the following costs for the year just ended:

a. Total prime costs b. Total manufacturing overhead costs C. Total conversion costs d. Total product costs e. Total period costs