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16 August, 11:01

Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:Depreciation on sales office: 9,600Depreciation on factory equipment: 16,100Factory supervisor salary: 50,800Sales commissions: 23,600Lubricants used in factory equipment: 3,200Insurance costs for factory: 21,500Wages paid to factory maintenance workers: 115,000Fabric used to upholster furniture: 10,200Freight in (on raw materials) : 3,500Costs of delivery to customers: 9,200Wages paid to assembly line workers: 155,900Lumber used to build product: 82,400Utilities in factory: 54,500Utilities in sales office: 26,700Product costs for Country Furniture Company totaled

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  1. 16 August, 13:06
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    Instructions are listed below

    Explanation:

    Giving the following information:

    Depreciation on sales office = 9,600: Period

    Depreciation on factory equipment = 16,100: Product - MOH

    Factory supervisor salary = 50,800: Product - MOH

    Sales commissions = 23,600: Period

    Lubricants used in factory equipment = 3,200: Product - MOH

    Insurance costs for the factory = 21,500: Product - MOH

    Wages paid to factory maintenance workers = 115,000: Product - MOH

    Fabric used to upholster furniture = 10,200: Product - DM

    Freight in (on raw materials) = 3,500: Product - MOH

    Costs of delivery to customers = 9,200: Period

    Wages paid to assembly line worker = 155,900: Product - DL

    Lumber used to build product = 82,400: Product - DM

    Utilities in factory = 54,500: Product - MOH

    Utilities in sales office = 26,700: Period

    First, we will categorize the costs in period or product cost. Product cost will be categorized in direct material (DM), direct labor (DL) and manufacturing overhead (MOH).

    Now, we calculate total product cost:

    Total product cost = 16100 + 50800 + 3200 + 21500 + 115000 + 10200 + 3500 + 155900 + 82400 + 54500 = $513,100
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