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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