An airline manufacturer incurred the following costs last mo

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

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(Click the icon to view the costs.)Read the requirements

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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 thefollowing: 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.

						Other
		DM	DL	IM	IL	MOH	Period

Solution

Total Manufacturing Overhead Costs =

Indirect Material+ Indirect Labour + Other Manufacturing Overhead=$45+$770+$650=$1465

Total Prime Cost= Direct Material + Direct Labour= $1350+$40=$1390

Total Product Costs=Prime Cost+ Manufacturing Overhead+ Period Cost

=$1390+$1465+$200

=$3055

Total Period Cost=$200

Total Conversion Cost= Total Manufacturing Overhead- Direct Material= 1465-1350=$115

Happy Learning ;)

		DM	DL	IM	IL	Other MoH	Period Cost
a.	Airplane seats	250
b.	Product supervisor salaries				140
c.	Depreciation on forklifts						70
d.	Machine Lubricants			45
e.	Factory Janitors wages		40
f.	Assembly worker wages				630
g.	Property tax on corporate marketing office						20
h.	Plant utilities					160