Problem: Product Costing Review
Mad Dog Enterprises manufactures computer game control devices such as joysticks and steering wheels. Following is a list of the costs incurred by Mad Dog in 2009:
Wages paid to assembly workers . . . . $100,000
Cost of plastic used in making devices . . . 25,000
Insurance on factory building . . . 12,000
Salary of factory supervisor . . . . 57,000
Interest on money borrowed to finance operations . . . 34,000
Wages paid to factory maintenance workers . . 61,000
Cost of computer/controller boards installed in devices . . . . . 38,000
Advertising costs . . . . . . . . . 127,000
Cost 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