Carleton Closures, Inc., manufactures clamps used in the overhead bin latches of several leading airplane models....

Carleton Closures, Inc., manufactures clamps used in the overhead bin latches of several leading airplane models. Greg Poole, president of Carleton Closures, Inc., has gathered the following cost information from the company’s accounting records for the latest month of operations.

Advertising		$25,000
Fire insurance premium for the factory building		$6,250
Sales office utilities		$2,500
Air filters for the buffing machines used to produce the clamps		$1,875
Aluminum used to produce the clamps		$37,500
Rent on the factory building		$10,000
Freight to ship the clamps to customers		$3,125
Sales department executives’ salaries		$42,500
Production supervisors’ salaries		$22,500
Assembly line workers’ wages		$60,000

(a) Calculate the total period costs for the month.

(b) Calculate the total product costs for the month.

(c) Calculate the amount of manufacturing overhead incurred for the month.

Solutions

Expert Solution

Ans.1	Total period cost $73125

	*Calculation:
	Advertising	25000
	Sales office utilities	2500
	Freight to ship the clamps to customers	3125
	Sales department executives' salaries	42500
	Total	73125

Ans.2	Total Product cost $138125

	*Calculation:
	Fire insurance premium for the factory building	6250
	Air filters for the buffing machines used to produce the clamps	1875
	Aluminum used to produce the clamps	37500
	Rent on the factory building	10000
	Production supervisors' salaries	22500
	Assembly line workers' wages	60000
	Total	138125

Ans.3	Total manufacturing overhead $40625

	*Calculation:
	Fire insurance premium for the factory building	6250
	Air filters for the buffing machines used to produce the clamps	1875
	Rent on the factory building	10000
	Production supervisors' salaries	22500
	Total	40625

jeff jeffy answered 1 year ago

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