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The following cost data for the year just ended pertain to Sentiments, Incorporated, a greeting card manufacturer: Direct material Advertising expense Depreciation on factory
The following cost data for the year just ended pertain to Sentiments, Incorporated, a greeting card manufacturer: Direct material Advertising expense Depreciation on factory building Direct labor: wages Cost of finished goods inventory at year-end Indirect labor: wages Production supervisor's salary Service department costs* $ 2,200,000 98,000 116,000 515,000 115,000 142,000 46,000 100,000 Direct labor: fringe benefits 110,000 31,000 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 personnelt 15,000 Sales commissions Product promotion costs 5,000 10,000 Indirect labor: fringe benefits *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. PR 2-42 (Algo) Part 1: Compute each of the following costs for the year just ended: 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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