Knight Company reports the following costs and expenses in May. From the informa

Question

Knight Company reports the following costs and expenses in May.

From the information, determine the total amount of:

Factory utilities $17,264 Direct labor $72,129 Depreciation on factory equipment 14,614 Sales salaries 48,905 Depreciation on delivery trucks 4,580 Property taxes on factory building 2,967 Indirect factory labor 52,129 Repairs to office equipment 2,173 Indirect materials 83,127 Factory repairs 2,556 Direct materials used 139,305 Advertising 15,495 Factory manager’s salary 8,318 Office supplies used 3,541

Explanation / Answer

(a) Manufacturing Overhead = Factory Utilities + Indirect Factory Labour + property taxes on factory building

= 17264 + 52129 + 2967

= $72360

(b) Product Costs = Direct Material used + Direct Labour used + Depreciation on Factory Equipment + Factory Manager's Salary + Factory Repairs

= 139305 + 72129 + 14614 + 8318 + 2556

= $ 236922

(c) Period Cost = Depreciation on Delivery Trucks + sales salary + advertising

= 4580 + 48905 + 15495

= $ 68980

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