Problem: Pearce Manufacturing Inc. incurred the following costs in February:
Direct Labor $40,000
Indirect Labor $15,000
Administrative Salaries $8,000
Raw materials purchased $10,000
Indirect materials used $4,000
Advertising Costs $1,000
Factory Rent $4,000
Factory Depreciation $2,000
Administrative Rent $3,000
Administrative Depreciation $1,000
In addtion, the following information is also available
Beginning / Ending
Raw Materials $2,000 / $4,000
Work-in-process $25,000 / $18,000
Finished Goods $4,000 / $12,000
Number of units produced 10,000 units
Number of units sold (sales price of $25 per unit) 9,000 units
Q1. Calculate total period costs.
Q2. Calculate raw material used.
Q3. Calculate cost of goods manufactured.