Question

In: Accounting

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

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 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?

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 2 years ago
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