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1.Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018:

Factory rent	$	38,000
Company advertising		25,100
Wages paid to seamstresses		77,000
Depreciation on salespersons' vehicles		31,700
Thread		1,170
Utilities for factory		24,400
Cutting room supervisor's salary		30,700
Presidents salary		75,200
Premium quality cotton material		42,000
Buttons		800
Factory insurance		18,900
Depreciation on sewing machines		6,000
Wages paid to cutters		51,000

Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute the cost of direct labor for Cotton White. 3. Compute the cost of manufacturing overhead for Cotton White. 4. Compute the total manufacturing cost for Cotton White. 5. Compute the prime cost for Cotton White. 6. Compute the conversion cost for Cotton White. 7. Compute the total period cost for Cotton White.

2.

Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthys costs for the most recent month.

Depreciation on factory equipment	$	980
Depreciation on CEO's company car		210
Speakers used in the keyboard		1,220
Production supervisor's salary		2,240
Glue and screws used in the keyboards		250
Wages of persons who install the speakers		2,960
Cost to run an ad on local radio stations		650
Utilities for the factory		1,310
Personnel manager's salary		2,550
Wages of person who attaches legs to keyboards		2,100

Required:

1. Calculate the total product cost for Noteworthy.

2. Calculate the prime cost for Noteworthy.

3. Calculate the manufacturing overhead for Noteworthy.

4. Calculate the direct labor for Noteworthy.

5. Calculate the conversion cost for Noteworthy.

6. Calculate the total variable cost (with number of units produced as the activity) for Noteworthy.

7. Calculate the total fixed cost (with number of units produced as the activity) for Noteworthy.

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