Calculation of direct material cost, direct labor cost, manufacturing overhead cost from the product cost. Direct material cost relates to the material which use in production and direct labor cost means the labor which helps in making raw material into finished goods and other remaining expenses are manufacturing overhead. To calculate: Direct material cost, direct labor cost, manufacturing overhead, Prime Cost, Conversion cost, Total Product cost.

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Chapter 1, Problem 4.2GBP

To determine

Concept introduction:

Calculation of direct material cost, direct labor cost, manufacturing overhead cost from the product cost. Direct material cost relates to the material which use in production and direct labor cost means the labor which helps in making raw material into finished goods and other remaining expenses are manufacturing overhead.

To calculate:

Direct material cost, direct labor cost, manufacturing overhead, Prime Cost, Conversion cost, Total Product cost.

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