Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018:
Factory rent ……………………………………………………………………. $42,000
Company advertising ……………………………………………………….. 18,000
Wages paid to seamstresses …………………………………………….. 75,000
Depreciation on salespersons’ vehicles …………………………….. 25,000
Thread ……………………………………………………………………………….. 1,000
Utilities for factory ……………………………………………………………. 22,000
Cutting room supervisor’s salary ………………………………………. 30,000
President’s salary ……………………………………………………………… 75,000
Premium quality cotton material ………………………………………. 42,000
Buttons …………………………………………………………………………………. 750
Factory insurance ……………………………………………………………… 15,000
Depreciation on sewing machines ………………………………………. 6,000
Wages paid to cutters ……………………………………………………….. 50,000
Required:
Compute the following for Cotton White:
1. Direct materials.
2. Direct labor.
3. Manufacturing overhead.
4. Total manufacturing cost.
5. Prime cost.
6. Conversion cost.
7. Total period cost.
