Top Shelf Company builds oak bookcases. Assume that you have the following infor

Question

Top Shelf Company builds oak bookcases. Assume that you have the following information about Top Shelf’s costs for the most recent month:

      

    1. Direct materials used:

    2. Direct Labor:

    3. Manufacturing Overhead:

    4. Prime Cost:

    5. Conversion Cost:

    6. Total Manufacturing Cost:

    7. Total Nonmanufacturing (period) Cost:

  Depreciation on factory equipment $ 1,800   Depreciation on delivery trucks 800   Wood used to build bookcases 1,500   Production supervisor’s salary 2,800   Glue and screws used in the bookcases 250   Wages of persons who assemble the bookcases 2,500   Cost to run an ad on local radio stations 600   Rent for the factory 3,500   CEO’s salary 3,000   Wages of person who sands the wood after it is cut 1,600

Explanation / Answer

Here is the answers-

Items Particular Amount($)     1. Direct materials used:   Wood used to build bookcases 1500     2. Direct Labor:   Wages of person who sands the wood after it is cut+  Wages of persons who assemble the bookcases 4100     3. Manufacturing Overhead: 1800+2800+250+3500 8350     4. Prime Cost: Direct Material+Direct Labour 5600     5. Conversion Cost: Direct labour+Manufacturing overhead 12450     6. Total Manufacturing Cost: 1500+4100+8350 13950     7. Total Nonmanufacturing (period) Cost: 800+600+3000 4400

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