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Homework answers / question archive /  E1-9 (Algo) Calculating Costs [LO 1-4] Cartwell Inc

 E1-9 (Algo) Calculating Costs [LO 1-4] Cartwell Inc

Management

 E1-9 (Algo) Calculating Costs [LO 1-4]
Cartwell Inc. makes picture frames which are sold in a local retail store and through various websites.
its
Wood for frames $10,500
eBook Rent for retail store 3,100
Depreciation on office equipment 420
Print Assembly worker wages 2,050
CEO's salary 3,550
eferences Glue and nails 250
Online sales commissions 1,500
Glass for frames 4,200
Depreciation on factory equipment 650 .
Factory utilities 400
Stain for frames 450
pS
Required: ;
1. Determine the cost of direct material.
2. Determine the cost of direct labor.
3. Determine the cost of manufacturing overhead.
4. Determine the total manufacturing cost.
5. Determine the total period cost.
6. Determine the total variable cost.
7, Determine the total fixed cost.
8. Determine the total prime cost.
9. Determine the total conversion cost.

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1. Cost of Direct Materials
Wood for frames 10500
Glass for frames 4200
Cost of Direct materials 14700
   
2. Cost of Direct Labor
Assembly Worker wages 2050
   
3. Manufacturing overhead:
Glues and nails 250
Depreciation on factory equipment 650
Factory utilities 400
Stain for frames 450
Manufacturing overhead 1750
   
4. Total manufacturing cost
Direct material 14700
Direct labor 2050
Manufacturing overhead 1750
Total manufacturing cost 18500
   
   
5. Total Period cost:
Rent for retail store 3100
Depreciation on office equipment 420
CEO's salary 3550
Online sales commission 1500
Total period cost 8570
   
6. Total Variable cost:
Wood for frames 10500
Glass for frames 4200
Assembly worker wages 2,050
Glues and nails 250
Factory utilities 400
Stain for frames 450
Online sales commission 1,500
Variable cost 19350
   
7. Total Fixed costs
Depreciation on Factory Equipment 650
Rent for retail store 3100
Depreciation on office equipment 420
CEO's salary 3550
Total Fixed cots 7,720
   
8. Total prime cost:
Direct material:  
Wood for frames 10500
Glass for frames 4,200
Direct labor:  
Assembly worker wages 2,050
Total prime cost 16,750
   
9. Total conversion cost:
Direct labor:  
Assembly worker wages 2,050
Manufacturing overhead 1,750
Total conversion cost 3,800