The following information is available for Wonderway, Inc., for 2015:
Factory rent...................................................$40,000
Company advertising..........................................20,000
Wages paid to laborers........................................82,000
Depreciation for president's vehicle..........................8,000
Indirect production labor......................................1,800
Utilities for factory............................................36,000
Production supervisor's salary..............................30,000
President's salary................................................60,000
Direct materials used..........................................34,500
Sales commissions................................................7,500
Factory insurance...............................................12,000
Depreciation on factory equipment.........................26,000
Required:
Calculate each of the following costs for Wonderway:
1. Direct labor.
2. Manufacturing overhead.
3. Prime cost.
4. Conversion cost.
5. Total manufacturing cost.
6. Period expenses.