Your boss asked you to compute Canco's product costs, period costs, conversion costs and prime costs for the first quarter of 2021 and to also report these figures the next morning to Canco's general management. You are a bit nervous as you have just been hired as a junior managerial accountant on a part-time basis and you do not want to leave a bad impression, thus you decide to stay after work and do the project your boss asked from you. Because you are taking BUSI 2083 currently, you believe this task should not be hard for you. You know exactly what financial information you need to retrieve from the accounting system which you pooled from QuickBooks. The figures are presented below:

Administrative Expenses $51,000

Selling Expenses $33,000

Direct Material cost $82,000

Direct Labour cost $47,000

Manufacturing Overhead cost $23,000

Required:

Calculate product costs, period costs, conversion costs, and prime costs requested by your boss.

Explain to the general management the basic cost definitions and how they influence the company's profitability, i.e., product vs. period costs; direct vs. indirect costs.

What costs would managers be able to control? Briefly explain at the upcoming meeting.

You are aware that this job is very important to you, and you really want to impress your boss and the management team thus you decide to go to bed early so that you can get up fresh and focused on your presentation next morning.