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Required information [The following information applies to the questions displayed below.] The following cost data for the year just ended pertain to Sentiments, Inc., a
Required information [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 Advertising expense $2,200,000 97,000 Depreciation on factory building 117,000 Direct labor: wages 450,000 Cost of finished goods inventory at year-end 115,000 Indirect labor: wages 141,000 Production supervisor's salary 47,000 Service department costs* 100,000 Direct labor: fringe benefits 90,000 Indirect labor: fringe benefits 32,000 Fringe benefits for production supervisor 10,000 Total overtime premiums paid 55,000 Cost of idle time: production employees 5 40,000 Administrative costs 150,000 Rental of office space for sales personnel 15,000 Sales commissions 4,000 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. 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 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
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