Answered Essay: Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015:

Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015:

HELP! Need help with questions 3, 4, 6, 7

Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015 Factory rent Company advertising Wages paid to seamstresses Depreciation on salespersons vehicles Thread Utilities for factory Cutting room supervisors salary Presidents salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters $ 36,600 25,400 76,300 30,800 1,070 23,200 30,900 75,800 40,900 840 18,100 7,000 51,400

Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2015 Factory rent Company advertising Wages paid to seamstresses Depreciation on salespersons’ vehicles Thread Utilities for factory Cutting room supervisor’s salary President’s salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters $ 36,600 25,400 76,300 30,800 1,070 23,200 30,900 75,800 40,900 840 18,100 7,000 51,400

Expert Answer

 

1 Cost of Direct material for cotton White
Premium Quality Cotton Material $40,900
Cost of Direct material for cotton White $40,900
2 Cost of Direct labor for Cotton white
Wages paid to Seamstresses(A) $76,300
Wages paid to Cutters (B) $51,400
Cost of Direct labor for Cotton white (A+B) $127,700
3 Cost of manufacturing Ovrehead for cotton white
Factory Rent $36,600
Utilities for factory $23,200
Factory Insurane $18,100
Depriciation on sewing machine $7,000
Thread $1,070
Buttons $840
Cutting room supervisor salary $30,900
Cost of manufacturing Ovrehead for cotton white $117,710
4 Total manufacturing cost for cotton
Cost of direct material $40,900
Cost of direct labor $127,700
Cost of manufacturing Ovrehead for cotton white $117,710
Total manufacturing cost for cotton $286,310
6 Conversion Cost for Cotton White Total manufacturing Overehad – Direct material cost
286310- 40900
Conversion Cost for Cotton White $245,410
7 Period Cost for cotton white
Company Advertising $25,400
Depriciation on sales person vehicle $30,800
President Salary $75,800
$132,000
Period Cost for cotton white
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