managerial accounting?

Question

A Company has the ff
Advertising $7,200
Assemblers wages 16,840
Depreciation of machinery 1,840
Factory utilitie 11,120
lathe operator,s wage 13,280
machinery repairs 4,520
office salaries 22,760
purchase of glue 320
purchsae of nails 160
purchase of oak 50,000
purchase of pine 19,800
supervisor,s salaries 38,280
There were no begining or ending inventories.Calculate
Direct material used
Direct labour
Factory overhead
Prime cost
Conversion cost

Answer 1

PRIME COST = Direct material +Direct labour + Direct expenses

OVERHEAD = Indirect material + Indirect labour + Indirect expenses

Conversion costs - The combination of a manufacturer's direct labor and factory overhead.

Direct materials:
purchase of glue 320
purchsae of nails 160
purchase of oak 50,000
purchase of pine 19,800
Total : 70,280

Direct labour:
Assemblers wages 16,840
lathe operator's wage 13,280
Total : 30,120

Factory overheads (indirect) :
Factory utilities 11,120
machinery repairs 4,520
supervisor's salaries 38,280
Total : 53,920

Prime cost :
Direct mat'ls 70,280
Direct labour 30,120
Direct expenses 1,840 (depn)
Total : 102,240

Conversion cost :
Direct labour 30,120
Factory overhead 53,920
Total : 84,040

Sorry if I got some wrong but a lot depends on assumptions, for e.g. I assumed that the machinery is only for the lathes, that's why I treated it as direct expenses. Also I treated the glue and nails as direct materials as I feel that they form part of the finished product. But at least I hope you got the idea, so I suggest you check your teacher's definition of the various terms and re-do the sums following her definitions.