Answer Happy

Required: A) Using the following format, classify the costs and total the amounts in each column. Direct Direct Manufacturing Selling Administrative materials labour overhead expense Costs expense B) What was the total product cost for 2021? C) What was the total period cost for 2021? D) Compute prime costs and conversion costs. E) Using your own words, describe the different between product costs and period costs. Why is it important for companies to distinguish between these types of costs? F) If the company sold 50,000 units during the year, what was the manufacturing cost per unit?
Required: A) Using the following format, classify the costs and total the amounts in each column. Direct Direct Manufacturing Selling Administrative materials labour overhead expense Costs expense B) What was the total product cost for 2021? C) What was the total period cost for 2021? D) Compute prime costs and conversion costs. E) Using your own words, describe the different between product costs and period costs. Why is it important for companies to distinguish between these types of costs? F) If the company sold 50,000 units during the year, what was the manufacturing cost per unit?
Stony Electronics Corporation manufactures a portable radio designed for mounting on the wall of the bathroom. The following list represents some of the different types of costs incurred in 2021 for the manufacture of these radios: Printed circuit boards used in radios $400,000 Insurance on the factory 5,750 Direct labour 325,900 Rent on the production facility 50,000 190,000 Supervision in the production facility Factory utilities 35,600 34,000 Cost of maintaining and repairing production equipment Indirect labour in the production facility 76,800 Depreciation on manufacturing equipment 23,500 Cost of plastic used to make radio case 130,000 Sales commissions 80,000 Sales salaries 123,780 Advertising 45,000 Salary of the factory assistant in the production facility 67,000 Depreciation on equipment in the head office 28,000 Salary of the office assistant in the head office 54,000 Accounting staff 255,000