E 2-37

a. Salary of cell supervisor

b. Power to hear and cool the plant in which the cell is located
c. Materials used to produce the motor
d. Maintenance for the cell's equipment (provided by the maintenance departement)
e. Labor used to produce motors
f. Cafetaria that services the plants employees
g. Depreciation on the plant
h. Depreciation on equipment used to produce the motors
i. Ordering costs for materials used in production
j. Engineering support (provided by the engineering department)
k. Cost of maintaining the plant and grounds
l. Cost of the plant's personnel office
m. Property tax on the plant and land

E 2-39
1. Product Cost Period Cost
Cost Direct MateDirect LaboManufactuSelling ExpAdministrative Expense
Direct Materials 216000
Factory Rent 24000
Direct Labor 120000
Factory Utilities 6300
Supervision in the factory 50000
Indirect labor in the factory 30000

Depreciation on factory equipment 9000

Sales commission 27000
Sales salaries 65000
Advertising 37000
Depreciation on the headquarters
building 10000
Salary of the corporate receptionist 30000
Other administration costs 175000
Salary of the factory receptionist 28000
Totals 216000 120000 147300 129000 215000
2. Direct Materials 216000
Direct Labor 120000
Manufacturing Overhead 147300
Total Product Cost 483300
3. Selling Expense 129000
Administrative Expense 215000
Total Period Cost 344000
4. Unit Product Cost Total Prod 16.11

P 2-53 Jul-01 Jul-31

Raw Materials Inventory 40,000 19800 Direct Labo 43500
Work-in-process inventory 21000 32500 Raw Materi 64000
Finished goods inventory 23200 22100 Total Over 108750
1. Direct Material Used in Production duri 84,200
2. Direct Materials Used 84200
Direct Labor 43500
Manufacturing overhead 108750
Total Manufacturing cost for July 236450
Work in process July 1 21000
Work in process July 31 -32500
Costs of good manufacturing 224950
3. Cost of goods manufacturing 224950
Finished goods inventory, July 1 23200
Finished goods inventory, July 31 -22100
Costs of goods sold 226050
 Direct
Indirect
Direct
Indirect
Direct
Indirect
Indirect
Direct
Direct
Indirect
Indirect
Indirect
Indirect

Administrative Expense