Question
In: Finance
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 | ||||
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