Question
Quail Company builds snowboards. Quail Company has reported the following costs for the previous year. Assume no production inventories. Cost of fiberglass (raw material) $
Quail Company builds snowboards. Quail Company has reported the following costs for the previous year. Assume no production inventories.
| Cost of fiberglass (raw material) | $ | 94,000 |
| Factory rent | $ | 49,000 |
| Advertising | $ | 135,000 |
| Utilities for factory | $ | 26,000 |
| Wages of assembly workers | $ | 88,000 |
| Production supervisor salary | $ | 50,000 |
| Sales manager salary | $ | 34,000 |
| Factory property taxes | $ | 29,000 |
| Depreciation on production equipment | $ | 28,000 |
| Cost of bindings (raw material) | $ | 23,000 |
| Screws | $ | 2,500 |
| Wages of snowboard painters | $ | 76,000 |
| Wages for maintenance workers | $ | 31,000 |
a. Compute the direct material costs.
b. Compute the direct labor cost.
c. Compute the manufacturing overhead.
d. Compute the total manufacturing cost.
e. Compute the prime cost.
f. Compute the conversion cost.
g. Compute the total period cost.
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At Least Know This CPA Review 2021 Financial Accounting And Reporting
Authors: At Least Know This
1st Edition
979-8533826730
