Problem:
1. Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2010.
Factory rent------------------------------------$36,000
Company advertising--------------------------24,000
Wages paid to seamstresses-----------------75,000
Depreciation on salespersons' vehicles------30,000
Thread------------------------------------------1,000
Utilities for factory---------------------------23,000
Cutting room supervisor's salary-----------30,000
President's salary---------------------------75,000
Premium quality cotton material-----------40,000
Buttons-----------------------------------------750
Factory insurance----------------------------18,000
Depreciation on sewing machines-----------6,000
Wages paid to cutters----------------------50,000
2: Compute the cost of direct labor for Cotton White. (Omit the "tiny_mce_markerquot; sign in your response.)
Direct labor cost:$___________
3: Compute the cost of manufacturing overhead for Cotton White. (Omit the "tiny_mce_markerquot; sign in your response.)
Manufacturing overhead:$___________
4: Compute the total manufacturing cost for Cotton White. (Omit the "tiny_mce_markerquot; sign in your response.)
Total manufacturing cost:$___________
5: Compute the prime cost for Cotton White. (Omit the "tiny_mce_markerquot; sign in your response.)
Prime cost:$___________
6: Compute the conversion cost for Cotton White. (Omit the "tiny_mce_markerquot; sign in your response.)
Conversion cost:$___________
7: Compute the total period cost for Cotton White. (Omit the "tiny_mce_markerquot; sign in your response.)
Total period cost:$___________