Question
Your cousin, Mary, produces an educational toy. The toy is made primarily of wood and plastic and it is manufactured, assembled and painted at the
Your cousin, Mary, produces an educational toy. The toy is made primarily of wood and plastic and it is manufactured, assembled and painted at the factory. Her accountants have determined that screws, sandpaper and paint are not worth the effort to trace to specific units. Her company, Play-2-Learn, has incurred the following costs during the month:
| Depreciation on the cutting machine | $ | 3000 |
| Depreciation on salespersons' vehicles | $ | 2500 |
| Factory insurance | $ | 4000 |
| Utilities for Factory | $ | 1000 |
| Rent for Factory | $ | 5000 |
| Advertising | $ | 1500 |
| Sales Commissions | $ | 2000 |
| Wages paid to painters | $ | 10000 |
| Wages paid to assembly workers | $ | 25000 |
| Assembly Supervisor's salary | $ | 3500 |
| Company President's salary | $ | 5000 |
| Wood | $ | 2000 |
| Plastic | $ | 1000 |
| Screws | $ | 650 |
| Sandpaper | $ | 200 |
| Paint | $ | 500 |
1. Calculate the total cost for Direct Materials
2. Calculate the total cost for Direct Labor
3. Calculate the total cost for Manufacturing Overhead
4. Calculate the total Prime Cost
5. Calculate the total Conversion Cost
6. Calculate the total Product Cost
7. Calculate the total Period Cost
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Auditing IT Infrastructures For Compliance
Authors: Martin Weiss, Michael G. Solomon
2nd Edition
1284090701, 978-1284090703
