Kennedy Company reports the following costs and expenses in May. Factory utilities $ 13,500 Direct labor $79,100 Depreciation on factory Sales salaries 48,400 equipment 12,650 Property taxes on factory Depreciation on delivery trucks 3,800 building 2,500 Indirect factory labor 48,900 Repairs to office equipment 1,300 Indirect materials 70,800 Factory repairs 2,000 Direct materials used 157,600 Advertising 23,000 Factory manager's salary 8,000 Office supplies used 2,640 Instructions From the information, determine the total amount of: (a) Manufacturing overhead. (b) Product costs. (c) Period costs.

Question

Business

Donna Powell

2 June, 14:31

Kennedy Company reports the following costs and expenses in May. Factory utilities $ 13,500 Direct labor $79,100 Depreciation on factory Sales salaries 48,400 equipment 12,650 Property taxes on factory Depreciation on delivery trucks 3,800 building 2,500 Indirect factory labor 48,900 Repairs to office equipment 1,300 Indirect materials 70,800 Factory repairs 2,000 Direct materials used 157,600 Advertising 23,000 Factory manager's salary 8,000 Office supplies used 2,640 Instructions From the information, determine the total amount of: (a) Manufacturing overhead. (b) Product costs. (c) Period costs.

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Answers (1)

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Mcclain · Answer 1

(a) $158,350

(b) $395,050

(c) $79,140

Explanation:

(a) Manufacturing overhead:

= Factory utilities + Depreciation on factory equipment + Indirect factory labor + Indirect materials + Factory manager's salary + Property taxes on factory building + Factory repairs

= $ 13,500 + $12,650 + 48,900 + 70,800 + 8,000 + 2,500 + 2,000

= $158,350

(b) Product costs:

= Total Manufacturing overhead + Direct material used + Direct labor

= $158,350 + $157,600 + $79,100

= $395,050

(c) Period cost:

= Depreciation on delivery truck + Sales salaries + Repairs to office equipment + Advertising + Office supplies used

= 3,800 + 48,400 + 1,300 + 23,000 + 2,640

= $79,140