Question

# Knight Company reports the following costs and expenses in May. Factory utilities \$16,300 Direct labor \$73,300...

Knight Company reports the following costs and expenses in May.

Factory utilities Direct labor \$16,300 \$73,300 13,350 46,700 4,600 3,300 53,400 2,000 83,100 2,590 142,700 16,900 8,300 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:-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

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