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Product Costing Review
Mad Dog Enterprises manufactures computer game control devices like joysticks and steering wheels. Following is the list of the costs incurred by Mad Dog in 2009:
Wages paid to assembly workers . . . . $100,000Cost of plastic used in making devices . . . 25,000Insurance on factory building . . . 12,000Salary of factory supervisor . . . . 57,000Interest on money borrowed to finance operations . . . 34,000Wages paid to factory maintenance workers . . 61,000Cost of computer/controller boards installed in devices . . . . . 38,000Advertising costs . . . . . . . . . 127,000Cost of electricity used in factory . . . . 46,000
Compute the total cost for each of the following categories:
1. Direct materials
2. Direct labor
3. Manufacturing overhead
4. Period costs
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This individual assignment is based on the TerraCycle Inc.
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