The following cost data for the year just ended pertain to S

The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer:

Compute

Total Prime costs

Total Manufacturing overhead costs

Total conversion

total product costs

total period costs

Direct material	$	2,200,000
Advertising expense		97,000
Depreciation on factory building		116,000
Direct labor: wages		465,000
Cost of finished goods inventory at year-end		115,000
Indirect labor: wages		141,000
Production supervisor’s salary		45,000
Service department costs*		100,000
Direct labor: fringe benefits		118,000
Indirect labor: fringe benefits		31,000
Fringe benefits for production supervisor		11,000
Total overtime premiums paid		55,000
Cost of idle time: production employees§		40,000
Administrative costs		150,000
Rental of office space for sales personnel†		15,000
Sales commissions		4,000
Product promotion costs		10,000
Compute Total Prime costs Total Manufacturing overhead costs Total conversion total product costs total period costs

Solution

Direct material

$2200000

Direct Labor:

Wages

465000

Fringe benefits

118000

Total prime costs

$1617000

Total Prime Cost:

Total manufacturing overhead:

Depreciation on factory building

$116000

Indirect labor: wages

141000

Production supervisor’s salary

45000

Service department’s costs

100000

Indirect labor: Fringe benefits

31000

Fringe benefits for production supervisor

11000

Total overtime premiums paid

55000

Cost of idle time: production employees

40000

Total manufacturing overhead

$539000

Total Conversion costs:

Direct labor($465000 + $118000)

$583000

Manufacturing overhead

539000

Total Conversion costs

$1122000

Total Product Costs:

Direct material

$2200000

Direct labor

583000

Manufacturing overhead

539000

Total Product costs

$3322000

Total Period Costs:

Advertising Expense

$97000

Administrative costs

150000

Rental of office space for sales personnel

15000

Sales commissions

4000

Product promotion costs

10000

Total Period Costs

$276000

Direct material	$2200000
Direct Labor:
Wages	465000
Fringe benefits	118000
Total prime costs	$1617000