Question 8 (20 Marks)

Part A (10 Marks)

The costs incurred by Treats Bakery Ltd. as part of its operations are listed below.

Cost Items	Amount $
Insurance on factory equipment	4,700
Wheat Flour and other key baking materials	55,800
Depreciation of computers used in the sales department	1,500
Bakers wages	38,600
Utility cost of the sales department	1,300
Rental for factory space	7,800
Depreciation on ovens and other factory equipment	4,800
Rental of space for the sales department	5,600
Salary of factory supervisor	17,000
Factory utility cost	6,900

Required

You are required to calculate the:

a) Prime cost (2 Marks)

b) Conversion cost (2 Marks)

c) Period cost (3 Marks)

d) Product cost (3 Marks)