E1-3 Caroline Company reports the following costs and expenses in May.
Factory utilities $ 8,500 Direct labor $69,100
Depreciation on factory equipment 12,650 Sales salaries 49,400
Property taxes on factory building 2,500 Depreciation on delivery trucks 3,800
Indirect factory labor 48,900 Repairs to office equipment 1,300
Indirect materials 80,800 Factory repairs 2,000
Direct materials used 137,600 Advertising 18,000
Factory manager's salary 8,000 Office supplies used 2,640
From the information, determine the total amount of:
(a) Manufacturing overhead.
(b) Product costs.
(c) Period costs.
This problem isn't difficult if you realize that all costs are either period or product costs. The only thing that goes into product costs is the cost of manufacturing the product, which includes all direct material, direct labor and manufacturing overhead. So make 2 columns, one ...
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