Cotton White, Inc., makes specialty clothing for chefs. The company reported the
ID: 2407495 • Letter: C
Question
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015: Factory rent 37,700 25,100 75,500 31,900 1,130 23,900 30,900 76,300 40,800 785 18,900 6,200 52,000 Company advertising Wages paid to seamstresses Depreciation on salespersons' vehicles Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters Required 1. Compute the cost of direct materials for Cotton White. ect Materials Cost 2. Compute the cost of direct labor for Cotton White.Explanation / Answer
1. Computation of Cost of Direct material for cotton White Premium Quality Cotton Material $40,800 Hence ,Cost of Direct material for cotton White $40,800 2. Computation of Cost of Direct labor for Cotton white Wages paid to Seamstresses(A) $75,500 Wages paid to Cutters (B) $52,000 Cost of Direct labor for Cotton white (A+B) $127,500 3. Computation of Cost of manufacturing Ovrehead for cotton white Factory Rent $37,700 Utilities for factory $23,900 Factory Insurane $18,900 Depriciation on sewing machine $6,200 Thread $1,130 Buttons $785 Cutting room supervisor salary $30,900 Manufacturing Ovrehead for cotton white $119,515 4. Computation Total manufacturing cost for cotton Cost of direct material $40,800 Cost of direct labor $127,500 Cost of manufacturing Ovrehead for cotton white $119,515 Total manufacturing cost for cotton $287,815