Classify and calculate a manufacturer’s costs (Learning Objectives 3, 4)

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

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. Calculate total conversion costs.
6. Total period costs.

Transcribed Image Text:

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