question archive Cotton White, Inc
Cotton White, Inc
Subject:AccountingPrice:2.84 Bought6
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: Factory rent 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 $ 37,000 25,500 76,400 31,000 1,130 24,300 31,100 75, 100 41,100 755 18,600 6,900 51,300 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute the cost of direct labor for Cotton White. 3. Compute the cost of manufacturing overhead for Cotton White. 4. Compute the total manufacturing cost for Cotton White. 5. Compute the prime cost for Cotton White. 6. Compute the conversion cost for Cotton White. 7. Compute the total period cost for Cotton White. 1. Direct Materials Cost 2. Direct Labor Cost 3. Manufacturing Overhead Cost 4. Total Manufacturing Cost 5. Prime Cost 6. Conversion Cost 7. Total Period Cost
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| 1. | Cost of Direct Material for Cotton White | |
| Premium quality cotton material | 41,100 | |
| Direct Material Cost | 41,100 | |
| 2. | Cost of Direct Labour for Cotton White | |
| Wages paid to seamstresses | 76,400 | |
| (+) Wages paid to cutters | 51,300 | |
| Direct Labour Cost | 127,700 | |
| 3. | Cost of Manufacturing Overhead for Cotton White | |
| Factory Rent | 37,000 | |
| (+) Utilities for factory | 24,300 | |
| (+) Factory Insurance | 18,600 | |
| (+) Depreciation on sewing machine | 6,900 | |
| (+) Thread | 1,130 | |
| (+) Buttons | 755 | |
| (+) Cutting room supervisor salary | 31,100 | |
| Manufacturing Overhead Cost | 119,785 | |
| 4. | Total Manufacturing Cost for Cotton White | |
| Cost of direct material | 41,100 | |
| (+) Cost of direct labor | 127,700 | |
| (+) Cost of Manufacturing Overhead | 119,785 | |
| Total Manufacturing Cost | 288,585 | |
| 5. | Prime Cost for Cotton White | |
| Direct material cost | 41,100 | |
| (+) Direct Labour Cost | 127,700 | |
| Prime Cost | 168,800 | |
| 6. | Conversion Cost for Cotton White | |
| (Total manufacturing Cost - Direct material cost) | (288,585 - 41,100) | |
| Conversion Cost | 247,485 | |
| 7. | Period Cost for Cotton White | |
| Company Advertising | 25,500 | |
| (+) Depreciation on sales person vehicle | 31,000 | |
| (+) President Salary | 75,100 | |
| Period Cost | 131,600 | |
