Knight Company reports the following costs and expenses in May.Factory utilities $17,000 Direct labor $73,700 Depreciation on factory equipment 13,150 Sales salaries 49,900 Depreciation on delivery trucks 4,300 Property taxes on factory building 3,300 Indirect factory labor 50,300 Repairs to office equipment 2,000 Indirect materials 82,400 Factory repairs 2,450 Direct materials used 141,700 Advertising 15,600 Factory manager’s salary 8,200 Office supplies used 3,510From the information, determine the total amount of:(a) Manufacturing overhead(b) Product costs(c) Period costs

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17-09-2019
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Knight Company reports the following costs and expenses in May.Factory utilities $17,000 Direct labor $73,700 Depreciation on factory equipment 13,150 Sales salaries 49,900 Depreciation on delivery trucks 4,300 Property taxes on factory building 3,300 Indirect factory labor 50,300 Repairs to office equipment 2,000 Indirect materials 82,400 Factory repairs 2,450 Direct materials used 141,700 Advertising 15,600 Factory manager’s salary 8,200 Office supplies used 3,510From the information, determine the total amount of:(a) Manufacturing overhead(b) Product costs(c) Period costs

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Answer:

MOH= $176800

Product costs= $215400

Period costs= 75310

Explanation:

- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.

- Period costs are not directly tied to the production process.

- Product costs are the direct costs involved in producing a product.

Giving the following information:

Factory utilities $17,000

Direct labor $73,700

Depreciation on factory equipment 13,150

Sales salaries 49,900

Depreciation on delivery trucks 4,300

Property taxes on factory building 3,300

Indirect factory labor 50,300

Repairs to office equipment 2,000

Indirect materials 82,400

Factory repairs 2,450

Direct materials used 141,700

Advertising 15,600

Factory manager’s salary 8,200

Office supplies used 3,510

MOH