Classify Manufacturing Costs (9 marks)

A Car Company had the following costs during January 2020

a) Classify each cost as either Direct Material (DM), Direct Labour (DL), Indirect Materials (IM), Indirect (Labour), Manufacturing Overhead (MOH) or period cost. Calculate the total for each type of cost.

Manufacturing Workers Wages$125,000 = DL

Plant utilities$7,000 = MOH

Office utilities$550 = PC

Plant/Manufacturing equipment depreciation$15,000 = MOH

Depreciation of Office Equipment$1,800 = PC

Manufacturing Supplies$3,500 = DM

Engine parts$180,000 = DM

Factory Janitor Wages$18,000 = MOH

Property taxes on Manufacturing facility$4,500 = MOH

Property taxes on Office building$500 = PC

Office Workers Salaries$45,000 = PC

b) Calculate total Manufacturing overhead costs (3 marks)

= 7000+15000+4500= 26500

c) Calculate total Inventoriable costs (2 marks)

d) Calculate total prime costs

e) Calculate total conversion costs (1 mark)

f) Calculate total period costs