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ACC 206 Week 2 Chapter 3 Exercise 2 Definitions of manufacturing concepts

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Chapter 3 Exercise 2: Definitions of manufacturing concepts 
Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended:  Materials and supplies used 
Brass                            
 $75,000 
Repair parts                  
            16,000 
Machine lubricants       
Wages and salaries 
            9,000 
Machine operators       
           128,000
Production supervisors  
            64,000 
Maintenance personnel  
Other factory overhead 
            41,000 
Variable                       
            35,000 
Fixed                            
            46,000 
Sales commissions       
            20,000 
 
Compute:
  1. a.       Total direct materials consumed
  2. b.      Total direct labor
  3. c.       Total prime cost
Total conversion cost 

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