Question

Knight Company reports the following costs and expenses in May.

Factory utilities		$16,300		Direct labor		$73,300
Depreciation on factory equipment		13,350		Sales salaries		46,700
Depreciation on delivery trucks		4,600		Property taxes on factory building		3,300
Indirect factory labor		53,400		Repairs to office equipment		2,000
Indirect materials		83,100		Factory repairs		2,590
Direct materials used		142,700		Advertising		16,900
Factory manager’s salary		8,300		Office supplies used		3,150

From the information:

Determine the total amount of manufacturing overhead ($)

Determine the total amount of product costs ($)

Determine the total amount of period costs ($)

Answer 1

Answer:-a)-Manufacturing overhead:-Factory utilities+ Depreciation on factory equipment+ Indirect factory labor+ Indirect material+ Factory manager’s salary+ Property taxes on factory building+ Factory repairs

=$16300+$13350+$53400+$83100+$8300+$3300+$2590

=$180340

b)-Product costs =Direct materials+ Direct labor+ Manufacturing overhead

=$142700+$73300+$180340

=$396340

c)-Period costs:-Depreciation on delivery trucks+ Sales salaries+ Repairs to office equipment+ Advertising+ Office supplies used

=$4600+$46700+$2000+$16900+$3150

=$73350