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

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

Asked by 2 years ago
365.9k points

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

a. Airplane seats . . . . . . . . . . . . . . . . . . . . . . . . . $260 b. Production supervisors' salaries . . . . . . . . . . . . . .$140

c. Depreciation on forklifts . . . . . . . . . . . . . . . . . . . . $80 d. Machine lubricants . . . . . . . . . . . . . . . . . . . . .$45

e. Factory janitors' wages . . . . . . . . . . . . . . . . . . . . . $20 f. Assembly workers' wages . . . . . . . . . . . . . . . . . . .$660

g. Property tax on corporate marketing office . . . . . $30 h. Plant utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$130

i. Cost of warranty repairs . . . . . . . . . . . . . . . . . . . . $225 j. Machine operators' health insurance . . . . . . . . . .$40

k. Depreciation on administrative offices . . . . . . . . . $70 l. Cost of designing new plant layout . . . . . . . . . . . .$195

m. Jet engines . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,400 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 amounts in thousands instead of dollars by omitting the​$000s. Leave cells blank that do not require numerical​ inputs.)

2. Calculate total manufacturing overhead costs.

3. Calculate total inventoriable product costs.

4. Calculate total prime costs.

5. Calculate total conversion costs.

6. Calculate total period costs.

An airline
JasonJones

### 1 Answer

Answered by 2 years ago
365.9k points

Requirement 1

DM DL IM IL Other MOH Period
a. Airplane seats \$260 b. Production supervisors' salaries \$140
c. Depreciation on forklifts \$80 d. Machine lubricants \$45
e. Factory janitors wages 20
f. Assembly workers wages \$660 g. Property tax on corporate marketing offices \$30
h. Plant utilities 130
i. Cost of warranty repairs 225
j. Machine operators' health insurance 40
k. Depreciation on administrative offices 70
l. Cost of designing new plant layout 195
m. Jet engines 1,400
Total \$1,660 \$700 \$45 \$160 \$210 \$520

Requirement 2

Indirect labor + Indirect materials + Other MOH = Total manufacturing overhead costs

160 + 45 + 210 = $415 Requirement 3 Direct labor + Direct materials + Manufacturing overhead = Total inventoriable product costs 700 + 1,660 + 415 =$2,775

Requirement 4

Direct labor + Direct materials = Total prime costs

700 + 1,660 = \$2,360 Requirement 5 Direct labor + Manufacturing overhead = Total conversion costs 700 + 415 = \$1,115

Requirement 6

The total period costs are \$520 thousand ### Your Answer Surround your text in *italics* or **bold**, to write a math equation use, for example, $x^2+2x+1=0\$ or $$\beta^2-1=0$$

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Asked: 2 years ago