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.