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14 September, 05:06

Knight Company reports the following costs and expenses in May:

Factory Utilities $16,961 Direct Labor $72,938

Depreciation on factory equipment $14,265 Sales salaries $49,143

Depreciation on delivery trucks $4,585 Property taxes on factory building $2,798

Indirect factory labor $52,541 Repairs to office equipment $1,888

Indirect materials $84,605 Factory repairs $2,583

Direct materials used $139,406 Advertising $15,233

Factory manager's salary $8,593 Office supplies used $2,878

From the information, determine the total amount of:

(a) Manufacturing Overhead

(b) Product Costs

(c) Period Costs

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Answers (1)
  1. 14 September, 06:40
    0
    Answer and Explanation:

    The computation is shown below:

    a. For manufacturing overhead cost

    = Factory utilities + Depreciation on Factory equipment + Property tax on Factory building + Indirect Factory labor + Indirect Material + Factory repairs + Factory manager's salary

    = $16,961 + $14,265 + $2,798 + $52,541 + $84,605 + $2,583 + $8,593

    = $182,346

    b. For product costs

    = Direct Material used + Direct Labor used + Manufacturing Overhead

    = $139,406 + $72,983 + $182,346

    = $394,735

    3) For period costs

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

    = $49,143 + $4,585 + $1,888 + $15,233 + $2,878

    = $73,727

    We simply applied the above formulas
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