Question
The following is a list of costs and amounts for Stelia Industries' latest month. Stelia makes one product, a metallic, reusable water bottle. Stainless steel
The following is a list of costs and amounts for Stelia Industries' latest month. Stelia makes one product, a metallic, reusable water bottle. Stainless steel sheet metal $ 6,523 Rubber caps 3,284
President's salary 4,752
Shipping to customers 1,154
Wages for maintenance crew 2,865
Insulation for bottles 1,141
Stainless steel finishing solution 585
Sandpaper 256
Advertising expense 6,985
Assembler wages 12,853
Depreciation on office equipment 152
Depreciation on milling machine 3,974
Property tax for factory 1,554
Supervisor salary 3,258
Use the information above to calculate the amounts below. Add up all lists of cost for each classification.
1. Direct Costs:
2. Indirect Costs:
3. Direct Materials:
4. Direct Labor:
5. Manufacturing Overhead:
6. Prime Cost: Conversion Cost:
7. Total Product Cost:
8. Period Cost:
9. Variable Cost:
10. Fixed Cost:
Step by Step Solution
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Step: 1
To answer your question we need to classify each of the costs provided into different categories relevant to manufacturing and financial accounting Lets break them down one by one Direct Costs Direct ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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