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

Direct material $2,200,000

Advertising expense98,000

Depreciation on factory building116,000

Direct labor: wages525,000

Cost of finished goods inventory at year-end115,000

Indirect labor: wages140,000

Production supervisor's salary46,000

Service department costs*100,000

Direct labor: fringe benefits101,000

Indirect labor: fringe benefits32,000

Fringe benefits for production supervisor11,000

Total overtime premiums paid55,000

Cost of idle time: production employees40,000

Administrative costs150,000

Rental of office space for sales personnel15,000

Sales commissions6,000

Product promotion costs10,000

*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: