Question
The following information relates to Walnut Ltd. for the year ended December 31, 2013: Sales $3,500,000 Purchases: Direct materials $700,000 Indirect materials $50,000 Office supplies
The following information relates to Walnut Ltd. for the year ended December 31, 2013:
Sales $3,500,000
Purchases:
Direct materials $700,000
Indirect materials $50,000
Office supplies $20,000
Salaries $500,000 *
Direct labour $800,000
Rent $100,000 *
Utilities $80,000 *
Advertising and promotional $30,000
Inventories: Dec. 31, 2012 Dec. 31, 2013
Direct materials $45,000 $62,000
Indirect materials ----- $ 9,000
Office supplies $1,000 -----
Work-in-process $4,100 $3,300
Finished goods $90,000 $81,700
*Of these costs, 80 % are assigned to manufacturing activities and the remainder pertain to selling and administrative functions.
(Assume that there is no "over-or-under" applied overhead.)
Instructions:
| |
|
|
- How much were the prime costs in 2013?
- How much were the conversion costs in 2013?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started