Quail Company builds snowboards Quail Company has reported t

Quail Company builds snowboards. Quail Company has reported the following costs for the previous year. Assume no production inventories.

a. Compute the direct material costs.

b. Compute the direct labor cost.

c. Compute the manufacturing overhead.

d. Compute the total manufacturing cost.

e. Compute the prime cost.

f. Compute the conversion cost.

g. Compute the total period cost.

Cost of fiberglass (raw material)	$	94,000
Factory rent	$	49,000
Advertising	$	135,000
Utilities for factory	$	26,000
Wages of assembly workers	$	88,000
Production supervisor salary	$	50,000
Sales manager salary	$	34,000
Factory property taxes	$	29,000
Depreciation on production equipment	$	28,000
Cost of bindings (raw material)	$	23,000
Screws	$	2,500
Wages of snowboard painters	$	76,000
Wages for maintenance workers	$	31,000

Solution

a. Direct material cost:       Cost of fibreglass 94000       Cost of bindings 23000     Direct material cost 117000 b. Direct labor cost:        Wages for assembly workers 88000      Wages for snowboard painters 76000      Direct labor cost 164000 c. Manufacturing overhead:          Factory rent 49000          Utilities for factory 26000          Production supervisor salary 50000          Factory property taxes 29000          Depreciation on production equipment 28000          Screws 2500          Wages for maintenance workers 31000     Manufacturing overhead 215500 d. Total manufacturing cost          Direct material cost 117000          Direct labor cost 164000          Manufacturing overhead 215500     Total manufacturing overhead 496500 e. Prime cost          Direct material cost 117000          Direct labor cost 164000     Prime cost 281000 f. Conversion cost          Direct labor cost 164000          Manufacturing overhead 215500      Conversion cost 379500 g. Total period cost         Advertising 135000         Sales manager\'s salary 34000      Total period cost 379500