Alameda Manufacturing manufactures a variety of wooden picture frames using recy

Question

Alameda Manufacturing manufactures a variety of wooden picture frames using recycled wood from old barns. Alameda Manufacturing has reported the following costs for the previous year. Assume no production inventories. Cost of hardware (hangers, decorations, etc) Cost of wood Depreciation on production equipment Factory property taxes Factory rent Glue Production supervisor salary Sales manager salary Utilities for factory Wages for maintenance workers Wages of assembly workers Wages of finishing workers $ 50,000 $86,000 $ 122,000 $ 33,000 $16,000 $ 48,000 $3.100 $ 41,000 $ 84,000 $ 26,600 $ 34,000 $ 88,000 $ 74,000 a. Compute the direct material costs. Material Costs b. Compute the direct labor cost. Labor Cost c. Compute the manufacturing overhead d. Compute the total manufacturing cost. e. Compute the prime cost. Cost f. Compute the conversion cost. Cost g. Compute the total period cost l Period Cost

Explanation / Answer

a) Direct Material Cost = 86000+122000 = $ 2,08,000

b) Direct labour Cost = 88000 + 74000 = $ 1,62,000

c) Manufacturing Overhead = 33000 + 16000 + 48000 + 3100 + 41000 + 26600 + 34000 = $201700

d) Total Manufacturing Cost = 201700 + 208000 + 162000 = $5,71,700

e) Prime Cost = 208000 + 162000 = $ 3,70,000

f) Conversion Cost = 162000 + 201700 = $ 3,63,700

g) Total Period Cost = 50000 + 84000 = $ 1,34,000

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