Arden Company reported the following costs and expenses for

Arden Company reported the following costs and expenses for the most recent month: Direct materials Direct labor Manufacturing overhead Selling expenses Administrative expenses $90,000 $52,000 $29,000 $32,000 $45,000 Required: 1. What is the total amount of product costs? Total product costs 2. What is the total amount of period costs? Total period costs 3. What is the total amount of conversion costs? Total conversion costs 4. What is the total amount of prime costs? Total prime costs

Solution

Question 1). Solution :- Total Product Costs = Direct Material + Direct Labor + Manufacturing overhead.

= 90000 + 52000 + 29000

= $ 171000.

Question 2). Solution :- Total Period Costs = Selling expenses + Administrative expenses.

= 32000 + 45000

= $ 77000.

Question 3). Solution :- Total conversion costs = Direct Labor + Manufacturing overhead.

= 52000 + 29000

= $ 81000.

Question 4). Solution :- Total Prime Costs = Direct Material + Direct Labor.

= 90000 + 52000

= $ 142000.

Conclusion :-

1). Total Product Costs	$ 171000.
2). Total Period Costs	$ 77000.
3). Total Conversion costs	$ 81000.
4). Total Prime costs	$ 142000.