Question: How do I solve this? The following cost data for 2014 relate to Simply Cards, a greetings card manufacturer: Direct material used in production -

How do I solve this?

The following cost data for 2014 relate to Simply Cards, a greetings card manufacturer:

Direct material used in production - 2,100,000

Advertising expense 99,000

Depreciation on factory building 115,000

Direct labour: wages 485,000

Cost of finished goods inventory at year-end125,000

Indirect labour: wages 140,000

Production supervisor's salary 45,000

Other manufacturing overheads 100,000

Direct labour: 95,000

Indirect labour: 85,000

Cost of idle time: production employees40,000

Administrative costs 150,000

Rental of office space for sales personnel15,000

Sales commissions 5,000

Product promotion expenses 10,000

Required:

Calculate each of the following costs for 2014:

a)Total prime costs. (4 marks)

b)Total manufacturing overhead costs. (7 marks)

c)Total conversion costs. (4 marks)

d)Total product costs (4 marks)

e)Total period costs. (6 marks)

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