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Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015:
HELP! Need help with questions 3, 4, 6, 7
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015 Factory rent Company advertising Wages paid to seamstresses Depreciation on salespersons’ vehicles Thread Utilities for factory Cutting room supervisor’s salary President’s salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters $ 36,600 25,400 76,300 30,800 1,070 23,200 30,900 75,800 40,900 840 18,100 7,000 51,400
Expert Answer
| 1 | Cost of Direct material for cotton White | ||
| Premium Quality Cotton Material | $40,900 | ||
| Cost of Direct material for cotton White | $40,900 | ||
| 2 | Cost of Direct labor for Cotton white | ||
| Wages paid to Seamstresses(A) | $76,300 | ||
| Wages paid to Cutters (B) | $51,400 | ||
| Cost of Direct labor for Cotton white (A+B) | $127,700 | ||
| 3 | Cost of manufacturing Ovrehead for cotton white | ||
| Factory Rent | $36,600 | ||
| Utilities for factory | $23,200 | ||
| Factory Insurane | $18,100 | ||
| Depriciation on sewing machine | $7,000 | ||
| Thread | $1,070 | ||
| Buttons | $840 | ||
| Cutting room supervisor salary | $30,900 | ||
| Cost of manufacturing Ovrehead for cotton white | $117,710 | ||
| 4 | Total manufacturing cost for cotton | ||
| Cost of direct material | $40,900 | ||
| Cost of direct labor | $127,700 | ||
| Cost of manufacturing Ovrehead for cotton white | $117,710 | ||
| Total manufacturing cost for cotton | $286,310 | ||
| 6 | Conversion Cost for Cotton White | Total manufacturing Overehad – Direct material cost | |
| 286310- 40900 | |||
| Conversion Cost for Cotton White | $245,410 | ||
| 7 | Period Cost for cotton white | ||
| Company Advertising | $25,400 | ||
| Depriciation on sales person vehicle | $30,800 | ||
| President Salary | $75,800 | ||
| $132,000 | |||
| Period Cost for cotton white | |||
