Problem
Brenda Ltd. had the following costs for the year:
|
Description
|
Amount
|
|
Factory utilities
|
11,000
|
|
Sales salaries
|
118,000
|
|
Sales commissions
|
49,000
|
|
Indirect labour in the factory
|
55,000
|
|
Salary of the factory supervisor
|
91,000
|
|
Salary of the head office receptionist
|
55,000
|
|
Direct labour
|
219,000
|
|
Marketing costs
|
67,000
|
|
Other administrative costs
|
319,000
|
|
Direct materials
|
394,000
|
|
Depreciation on factory equipment
|
16,000
|
|
Factory rent
|
44,000
|
|
Salary of the factory receptionist
|
51,000
|
|
Depreciation on the head office building
|
18,000
|
Task
1. What was the total product costs for the year?
2. What are the total prime costs for the year?
3. What are the total conversion costs for the year?
4. What are the total period costs for the year?
5. If the company produced 20,000 units for the year, what was the unit product cost (the cost per unit)?