Knight Company reports the following costs and expenses in May. Factory utilitie
ID: 2328227 • Letter: K
Question
Knight Company reports the following costs and expenses in May. Factory utilities $16,300 Direct labor $70,400 Depreciation on factory equipment 13,050 Sales salaries 49,600 Depreciation on delivery trucks 4,900 Property taxes on factory building 3,100 Indirect factory labor 52,600 Repairs to office equipment 1,400 Indirect materials 82,100 Factory repairs 2,890 Direct materials used 138,700 Advertising 16,500 Factory manager’s salary 9,000 Office supplies used 3,140 Determine the total amount of manufacturing overhead.
Determine the total amount of product costs.
Determine the total amount of period costs.
Explanation / Answer
Manufacturing Overhead:
Factory utilities
$16,300
Depreciation of factory equipment
$13,050
Property taxes on factory building
$3,100
Indirect factory labor
$52,600
Indirect material
$82,100
Factory repairs
$2,890
Factory manager's salary
$900
Total manufacturing overhead
$170,940
Product costs:
Direct labor
$70,400
Direct material
$138,700
Total product costs
$209,100
Periodic costs:
Sales salaries
$49,600
Depreciation of delivery trucks
$4,900
Repair to office equipment
$1,400
Advertising
$16,500
Office supplies used
$3,140
Total periodic costs
$75,540
Manufacturing Overhead:
Factory utilities
$16,300
Depreciation of factory equipment
$13,050
Property taxes on factory building
$3,100
Indirect factory labor
$52,600
Indirect material
$82,100
Factory repairs
$2,890
Factory manager's salary
$900
Total manufacturing overhead
$170,940
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