Rissa D.

Sanchez
Exercise 2- 31
Total Product Cost = DM + DL + OH

Total Period Cost = AE + SE

Unit Product Cost = TPC/Number of units produced

1.Cost Classification

Product Cost Period Cost

Cost Direct Materials Direct Labor Manufact Selling Administr

uring Expense ative
Overhead Expense

Direct Materials 216,000

Factory Rent 24,000

Direct Labor 120,000

Factory Utilities 63,000

Supervision in the factory 50,000

Indirect Labor in the factory 30,000

Depreciation on the factory Equipment 9,000

Sales Commissions 27,000

Sales Salaries 65,000

Advertising 37,000

Depreciation on the Headquarters bldng. 10,000

Salary on the corporate receptionist 30,000

Other administrative costs 175,000

Salary on the factory receptionist 28,000

Total 216,000 120,000 147,300 129,000 215,000

2. Total product cost for last year = 483,000

216,000 + 120,000 + 147,300

3. Total period cost for last year = 344,000

129,000 + 215,000

4. Unit product cost = 16.11 per unit

483,3000/30,000

Exercise 2- 32
Costs Classification
Jar Direct materials
Sugar Direct materials
Fruit Direct materials
Pectin Direct materials
Boxes Manufacturing overhead
Depreciation on factory building Manufacturing overhead
Cooking equipment operator’s wages Direct labor
Filing equipment operator’s wages Direct labor
Packer’s wages Manufacturing overhead
Janitor’s wages Manufacturing overhead
Receptionist wages Manufacturing overhead
Telephone Manufacturing overhead
Utilities Manufacturing overhead
Rental of Santa Claus suit Manufacturing overhead
Supervisory labor salary Manufacturing overhead
Insurance om factory building Manufacturing overhead
Depreciation on factory equipment Manufacturing overhead
Oil to lubricate filing equipment Manufacturing overhead

Exercise 2- 33
1.
Direct Material 400,000
Direct labor 80,000
Manufacturing overhead 320,000
Total cost 800,000
2.
Product Cost per unit = 200
800,000/4,000 camera

Exercise 2- 34

1. Prime cost = Direct materials + direct labor

= 400,000 + 80,000
= 480,000

2. Per unit prime costs = 480,000/4,000

= 120,00 per unit

3. Conversion cost = direct labor + manufacturing overhead

= 80,000 + 320,000
= 400,000

4. Per unit conversion cost = 400,000/4,000

= 100 per unit