Cotton White, Incorporated, makes specialty clothing for chefs. The company reported the following costs for the current year: Factory rent Company advertising Wages paid to sewing personnel Depreciation on salespersons' vehicles Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters 5. Compute the prime cost for Cotton White. 6. Compute the conversion cost for Cotton White. 7. Compute the total period cost for Cotton White. $36,000 24,600 75,200 31,300 1,110 24,800 31,500 75,500 41,200 785 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute the cost of direct labor for Cotton White. 3. Compute the cost of manufacturing overhead for Cotton White. 4. Compute the total manufacturing cost for Cotton White. 1. Direct Materials Cost 2. Direct Labor Cost 3. Manufacturing Overhead Cost 4. Total Manufacturing Cost 5. Prime Cost 6. Conversion Cost 7. Total Period Cost 19,100 6,300 51,500

Cotton White, Incorporated, makes specialty clothing for chefs. The company reported the following costs for the current year: Factory rent Company advertising Wages paid to sewing personnel Depreciation on salespersons' vehicles Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters 5. Compute the prime cost for Cotton White. 6. Compute the conversion cost for Cotton White. 7. Compute the total period cost for Cotton White. $36,000 24,600 75,200 31,300 1,110 24,800 31,500 75,500 41,200 785 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute the cost of direct labor for Cotton White. 3. Compute the cost of manufacturing overhead for Cotton White. 4. Compute the total manufacturing cost for Cotton White. 1. Direct Materials Cost 2. Direct Labor Cost 3. Manufacturing Overhead Cost 4. Total Manufacturing Cost 5. Prime Cost 6. Conversion Cost 7. Total Period Cost 19,100 6,300 51,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Cotton White, Incorporated, makes specialty clothing for chefs. The company reported the following costs for the current year:
Factory rent
Company advertising
Wages paid to sewing personnel
Depreciation on salespersons' vehicles
Thread
Utilities for factory
Cutting room supervisor's salary
President's salary
Premium quality cotton material
Buttons
Factory insurance
Depreciation on sewing machines
Wages paid to cutters
1. Direct Materials Cost
2. Direct Labor Cost
3. Manufacturing Overhead Cost
4. Total Manufacturing Cost
5. Prime Cost
$ 36,000
24,600
75,200
31,300
1,110
6. Conversion Cost
7. Total Period Cost
24,800
31,500
75,500
41, 200
785
Required:
1. Compute the cost of direct materials for Cotton White.
2. Compute the cost of direct labor for Cotton White.
3. Compute the cost of manufacturing overhead for Cotton White.
4. Compute the total manufacturing cost for Cotton White.
5. Compute the prime cost for Cotton White.
6. Compute the conversion cost for Cotton White.
7. Compute the total period cost for Cotton White.
19,100
6,300
51,500

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Step 1: Basic Introduction: Direct material cost is the cost of raw material produced or purchased for prod

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Step 2: 1) Computation of cost of direct materials:

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Step 3: 2) Computation of cost of direct labor:

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Step 4: 3) Computation of the cost of manufacturing overhead:

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Step 5: 4) Calculation of Total Manufacturing Costs

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Step 6: 5) Calculation of Prime Cost

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