In October, purchases of materials equalled $12,350, the beginning inventory of materials was $1,200, and the ending inventory of materials was $1,450. Payments for direct labor during the month totalled $22,780. The Overhead incurred was $18,500. Spent $6,800 on advertising during the month. Admin. Costs (primarily accounting & legal services) amounted to $4,250 for the month. Revenues for October were $75,600. 1. What was the cost of materials used during October? 2. What was the prime cost for October?

In October, purchases of materials equalled $12,350, the beginning inventory of materials was $1,200, and the ending inventory of materials was $1,450. Payments for direct labor during the month totalled $22,780. The Overhead incurred was $18,500. Spent $6,800 on advertising during the month. Admin. Costs (primarily accounting & legal services) amounted to $4,250 for the month. Revenues for October were $75,600. 1. What was the cost of materials used during October? 2. What was the prime cost for October?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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