Thornton Foods Bakes and Sells 2,000 Dozen Muffins Each Week

Essay

Thornton Foods bakes and sells 2,000 dozen muffins each week to food service operations.Among the costs are bakers' salaries,$24,000;production management salaries,$16,000;production equipment operating costs,$32,000;and flour and ingredient costs,$15,000.Using this information,compute: (a)prime costs and (b)conversion costs.