Reference no: EM13487445

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

a.	Air plane seats	$   250
b.	Depreciation on administrative offices	60
c.	Assembly worker's wages	600
d.	Plant utilities	120
e.	Production supervisors salaries	100
f.	Jet engines	1,000
g.	Machine Lubricants	15
h.	Depreciation on forklifts	50
i.	Property tan on corporate marketing office	25
j.	Cost of warranty repairs	225
k.	Factory janitor's wages	30
l.	Cost of designing new plant layout	175
m.	Machine operators health insurance	40
	TOTAL	$2,690

 

Requirements

1.       If 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. (Hint: Set up a column for each type of cost). What is the total for each type of cost?

2.       Calculate total manufacturing overhead costs.

3.       Calculate total inventoriable product costs.

4.       Calculate total prime costs.

5.       Calculated total conversation costs.

6.       Calculate total period costs.