3. Definitions of manufacturing concepts Interstate Manufacturing produces brass

Question

3. Definitions of manufacturing concepts
Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended:
Materials and supplies used
Brass                   $75,000
Repair parts               16,000
Machine lubricants            9,000
Wages and salaries Machine operators    128,000
Production supervisors            64,000
Maintenance personnel            41,000
Other factory overhead Variable    35,000
Fixed                    46,000
Sales commissions           20,000

Compute:
a.   Total direct materials consumed
b.   Total direct labor
c.   Total prime cost
d.   Total conversion cost

Explanation / Answer

a)Total direct materials consumed= 75000+16000+9000=$100,000
b)Total Direct labor=128,000+64,000+41,000=$233,000
c)Total Prime cost=Total direct material+total direct labour=100,000+233,000=$333,000
d)Total COnversion Cost=Total directlabour+manufacturing overhead
=233,000+35,000=$268,000

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.