An airline manufacturer incurred the following costs last month (in thousands of dollars):

Requirement 1. Assuming the cost object is an airplane, classify each cost as one of the following: direct material (DM), direct labor (DL), indirect labor (IL), indirect materials (IM), other manufacturing overhead (other MOH), or period cost. What is the total for each type of cost? (Enter currency amounts in thousands and not in dollars. If a box is not used in the table leave the box empty; do not enter a zero.)

						Other
		DM	DL	IM	IL	MOH	Period

a.	Airplane seats. . . . . . . . . . . . . . . . . . . . . . . . .
b.	Production supervisors' salaries. . . . . . . . . . . . . .
c.	Depreciation on forklifts in factory. . . . . . . . . . . .
d.	Machine lubricants. . . . . . . . . . . . . . . . . . . . .
e.	Factory janitors' wages. . . . . . . . . . . . . . . . . . . . .
f.	Assembly workers' wages. . . . . . . . . . . . . . . . . . .

Enter any number in the edit fields and then click Check Answer.

DATA TABLE

a.	Airplane seats. . . . . . . . . . . . . . . . . . . . . . . . .	$250
b.	Production supervisors' salaries. . . . . . . . . . . . . .	$140
c.	Depreciation on forklifts in factory. . . . . . . . . . . .	$70
d.	Machine lubricants. . . . . . . . . . . . . . . . . . . . .	$45
e.	Factory janitors' wages. . . . . . . . . . . . . . . . . . . . .	$40
f.	Assembly workers' wages. . . . . . . . . . . . . . . . . . .	$630
g.	Property tax on corporate marketing office. . . . .	$20
h.	Plant utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$160
i.	Cost of warranty repairs. . . . . . . . . . . . . . . . . . . .	$255
j.	Machine operators' health insurance. . . . . . . . . .	$60
k.	Depreciation on administrative offices. . . . . . . . .	$110
l.	Cost of designing new plant layout. . . . . . . . . . . .	$175
m.	Jet engines. . . . . . . . . . . . . . . . . . . . . . . . . . .	$1,100

REQUIRMENTS

1.	Assuming the cost object is an airplane, classify each cost as one of thefollowing: direct material (DM), direct labor (DL), indirect labor (IL), indirect materials (IM), other manufacturing overhead (other MOH), or period cost. What is the total for each type of cost?
2.	Calculate total manufacturing overhead costs.
3.	Calculate total product costs.
4.	Calculate total prime costs.
5.	Calculate total conversion costs.
6.	Calculate total period costs.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

During the month of January, the following costs were incurred:

During the month of January, the following costs were incurred: 2010 Jan 8 Purchased Materials for cash, $150,000 Jan 10 Requisition for Direct Materials that were put into production, $100,000 Jan 20 Requisitioned for Indirect Materials that were put into production, $4,000. Jan 23 Direct Labor cost incurred during the period, $60,000 when the labor rate per hour was $5. Jan 25 Indirect labor cost incurred during the month of January is $6,000. Jan 28 Paid factory supervisor’s salaries...

The profit P, in thousands of dollars, that a manufacturer makes is a function of the...

The profit P, in thousands of dollars, that a manufacturer makes is a function of the number N, in thousands, of widgets produced in a year, and the formula is P(N)= 10N-N2-6.34. The formula is valid up to a level of 7,000 widgets produced. Express in functional notation the profit at a production level of 4,500 widgets. Calculate the value and explain the result in practical terms. What are the fixed costs? Determine the break-even point(s) for this manufacturer. What...

The following are costs incurred by a shoe manufacturer. Determine and explain whether each one is...

The following are costs incurred by a shoe manufacturer. Determine and explain whether each one is a fixed cost or a variable cost or has some element of both. (a) The cost of leather. (b) The fee paid to an advertising agency. (c) Wear and tear on machinery. (e) Electricity for heating and lighting. (f) Electricity for running the machines. ( g) Basic minimum wages agreed with the union. (h) Overtime pay.

A business operated at 100% of capacity during its first month and incurred the following costs:...

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,600 units): Direct materials $172,100 Direct labor 234,800 Variable factory overhead 267,600 Fixed factory overhead 100,300 $774,800 Operating expenses: Variable operating expenses $131,500 Fixed operating expenses 46,900 178,400 If 1,800 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? The actual price for a product was...

A business operated at 100% of capacity during its first month and incurred the following costs:...

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,100 units): Direct materials $171,800 Direct labor 220,400 Variable factory overhead 256,100 Fixed factory overhead 102,000 $750,300 Operating expenses: Variable operating expenses $128,600 Fixed operating expenses 43,000 171,600 If 1,600 units remain unsold at the end of the month and sales total $1,143,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?...

During the past month, the following costs were incurred in the three production departments and two...

During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.: Using Department Supplying Department Administration Factory Support Fabrication Assembly Finishing Administration − 0.40 0.30 0.20 0.10 Factory support 0.15 − 0.15 0.15 0.55 Direct cost $ 680,000 $ 1,350,000 $ 1,760,000 $ 288,000 $ 258,000 Required: Allocate service department costs to Fabrication, Assembly, and Finishing using the reciprocal method, and determine the total costs of Fabrication, Assembly, and...

During the past month, the following costs were incurred in the three production departments and two...

During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.: Using Department Supplying Department Administration Factory Support Fabrication Assembly Finishing Administration ? 0.40 0.20 0.10 0.30 Factory support 0.10 ? 0.10 0.20 0.60 Direct cost $ 570,000 $ 1,295,000 $ 1,650,000 $ 277,000 $ 247,000 Required: Allocate service department costs to Fabrication, Assembly, and Finishing using the reciprocal method, and determine the total costs of Fabrication, Assembly, and...

A business operated at 100% of capacity during its first month and incurred the following costs:...

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (10,000 units): Direct materials $170,000 Direct labor 360,000 Variable factory overhead 190,000 Fixed factory overhead 50,000 $770,000 Operating expenses: Variable operating expenses $ 60,000 Fixed operating expenses 18,000 78,000 If 500 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? a.$41,500 b.$42,800 c.$38,500 d.$36,000

A business operated at 100% of capacity during its first month and incurred the following costs:...

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units): Direct materials-$70,000 Direct labor-20,000 Variable factory overhead-10,000 Fixed factory overhead-20,000 total $102,000 Operating expenses: Variable operating expenses-$17,000 Fixed operating expenses-1,000 total $18000 Prepare a variable income statement assuming 1000 units remain unsold at the end of the month and sales total $160,000 for the month

During the past month, the following costs were incurred in the three production departments and two...

During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.: Using Department Supplying Department Administration Factory Support Fabrication Assembly Finishing Administration − 0.40 0.30 0.20 0.10 Factory support 0.10 − 0.30 0.10 0.50 Direct cost $ 520,000 $ 1,270,000 $ 1,600,000 $ 272,000 $ 242,000 Required: Allocate service department costs to Fabrication, Assembly, and Finishing using the reciprocal method, and determine the total costs of Fabrication, Assembly, and...

Subjects

Question

An airline manufacturer incurred the following costs last month​ (in thousands of​ dollars):

Solutions

Expert Solution

Related Solutions

An airline manufacturer incurred the following costs last month (in thousands of dollars):