For each of the following independent cases AE compute the m

For each of the following independent cases (A-E), compute the missing values in the table Case Prime Cost Total Conversion Cost Direct Materials Direct Manufacturing Manufacturing Labor Overhead Cost $ 2,100 1,180 3,670 6,880 11,510 2,140 6,770 7,920 1,590 3,060 9,510 1,990 2,930 5,810 11,590 20,570 3,390

Solution

Solution:

First of all we need to understand the meaning of Prime Cost and Conversion Cost.

Prime Cost

Prime Cost is the direct cost of a product or article with respect to materials and labors directly involved in the production excluding fixed costs.

Prime Cost = Direct Materials Cost + Direct Labor Cost + Direct Expense

Conversion Cost

Conversion Costs is the cost of direct labor and manufacturing overhead incurred in production. It is the cost of converting raw material into finished goods in production department.

Conversion Cost = Direct Labor + Manufacturing overhead

Total Manufacturing Cost is the sum of cost of direct material, cost of direct labor and manufacturing overhead cost incurred in producing the product.

Total Manufacturing Cost = Direct materials + Direct Labor + Manufacturing Overhead Costs

Here is the solution:

Case

Prime Cost

Conversion Cost

Direct materials

Direct Labor

Manufacturing Overhead

Total Manufacturing Cost

A

$3,280

(2100+1180)

$4,850

(1180+3670)

$2,100

$1,180

$3,670

$6,950

B

$6,880

$11,510

$2,140

$4,740

(11510 – 6770)

$6,770

$13,650

C

$4,650

(1590+3060)

$7,920

$1,590

$3,060

$4,860

(7920 – 3060)

$9,510

D

$2,880

(890+1990)

$4,920

(1990 + 2930)

$890

(5810-1990-2930)

$1,990

$2,930

$5,810

E

$11,590

$20,570

$3,390

$8,200

(11590-3390)

$12,370

(20570-8200)

$23,960

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

Case	Prime Cost	Conversion Cost	Direct materials	Direct Labor	Manufacturing Overhead	Total Manufacturing Cost
A	$3,280 (2100+1180)	$4,850 (1180+3670)	$2,100	$1,180	$3,670	$6,950
B	$6,880	$11,510	$2,140	$4,740 (11510 – 6770)	$6,770	$13,650
C	$4,650 (1590+3060)	$7,920	$1,590	$3,060	$4,860 (7920 – 3060)	$9,510
D	$2,880 (890+1990)	$4,920 (1990 + 2930)	$890 (5810-1990-2930)	$1,990	$2,930	$5,810
E	$11,590	$20,570	$3,390	$8,200 (11590-3390)	$12,370 (20570-8200)	$23,960