Required information [The following information applies to the questions displayed below.] The following cost data for the year just ended pertain to Sentiments, Incorporated, a greeting card manufacturer: Direct material Advertising expense Depreciation on factory building Direct labor: wages Cost of finished goods inventory Indirect labor: wages Production supervisor's salary Service department costs* Direct labor: fringe benefits Indirect labor: fringe benefits Fringe benefits for production supervisor Total overtime premiums paid Cost of idle time: production employees Administrative costs year-end Rental of office space for sales personnel* Sales commissions Product promotion costs Required: 1. Compute each of the following costs for the year just ended: a. Total prime costs b. Total manufacturing overhead costs c. Total conversion costs $ 2,300,000 98,000 115,000 480,000 115,000 141,000 46,000 100,000 *All services are provided to manufacturing departments. §Cost of idle time is an overhead item; it is not included in the direct-labor wages given above. d. Total product costs e. Total period costs 89,000 31,000 *The rental of sales space was made necessary when the sales offices were converted to storage space for raw material. 10,000 55,000 40,000 150,000 15,000 5,000 10,000
Required information [The following information applies to the questions displayed below.] The following cost data for the year just ended pertain to Sentiments, Incorporated, a greeting card manufacturer: Direct material Advertising expense Depreciation on factory building Direct labor: wages Cost of finished goods inventory Indirect labor: wages Production supervisor's salary Service department costs* Direct labor: fringe benefits Indirect labor: fringe benefits Fringe benefits for production supervisor Total overtime premiums paid Cost of idle time: production employees Administrative costs year-end Rental of office space for sales personnel* Sales commissions Product promotion costs Required: 1. Compute each of the following costs for the year just ended: a. Total prime costs b. Total manufacturing overhead costs c. Total conversion costs $ 2,300,000 98,000 115,000 480,000 115,000 141,000 46,000 100,000 *All services are provided to manufacturing departments. §Cost of idle time is an overhead item; it is not included in the direct-labor wages given above. d. Total product costs e. Total period costs 89,000 31,000 *The rental of sales space was made necessary when the sales offices were converted to storage space for raw material. 10,000 55,000 40,000 150,000 15,000 5,000 10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
The following cost data for the year just ended pertain to Sentiments, Incorporated, a
greeting card manufacturer:
Direct material
Advertising expense
Depreciation on factory building
Direct labor: wages
Cost of finished goods inventory
Indirect labor: wages
Production supervisor's salary
Service department costs*
Direct labor: fringe benefits
Indirect labor: fringe benefits
Fringe benefits for production supervisor
Total overtime premiums paid
year-end
Cost of idle time: production employees
Administrative costs
Rental of office space for sales personnel*
Sales commissions
Product promotion costs
$ 2,300,000
98,000
115,000
480,000
115,000
141,000
Required:
1. Compute each of the following costs for the year just ended:
a. Total prime costs
b. Total manufacturing overhead costs
c. Total conversion costs
d. Total product costs
e. Total period costs
46,000
100,000
89,000
31,000
10,000
55,000
40,000
150,000
15,000
*All services are provided to manufacturing departments.
§Cost of idle time is an overhead item; it is not included in the direct-labor wages
given above.
5,000
10,000
*The rental of sales space was made necessary when the sales offices were
converted to storage space for raw material.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b1d268d-7dca-415e-8c82-251a31d239ec%2F468a7a43-e09d-44f5-b483-1b1b968e170f%2Fchruyps6_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
The following cost data for the year just ended pertain to Sentiments, Incorporated, a
greeting card manufacturer:
Direct material
Advertising expense
Depreciation on factory building
Direct labor: wages
Cost of finished goods inventory
Indirect labor: wages
Production supervisor's salary
Service department costs*
Direct labor: fringe benefits
Indirect labor: fringe benefits
Fringe benefits for production supervisor
Total overtime premiums paid
year-end
Cost of idle time: production employees
Administrative costs
Rental of office space for sales personnel*
Sales commissions
Product promotion costs
$ 2,300,000
98,000
115,000
480,000
115,000
141,000
Required:
1. Compute each of the following costs for the year just ended:
a. Total prime costs
b. Total manufacturing overhead costs
c. Total conversion costs
d. Total product costs
e. Total period costs
46,000
100,000
89,000
31,000
10,000
55,000
40,000
150,000
15,000
*All services are provided to manufacturing departments.
§Cost of idle time is an overhead item; it is not included in the direct-labor wages
given above.
5,000
10,000
*The rental of sales space was made necessary when the sales offices were
converted to storage space for raw material.
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