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ilding 2) ns in recent years. uld represent er Service). Note: h a strong sus- n erosion con- Great Smoky oducts are pro- iment control
ilding 2) ns in recent years. uld represent er Service). Note: h a strong sus- n erosion con- Great Smoky oducts are pro- iment control living roof" on g roof in the grass, and its mwater manage ( life then An airline manufacturer incurred the following costs last month (in thousands of dollars): a. Airplane seats. b. Production supervisors' salaries. c. Depreciation on forklifts in factory d. Machine lubricants. e. Factory janitors' wages f. Assembly workers' wages. g. Property tax on corporate marketing office. h. Plant utilities. i. Cost of warranty repairs.. J. Machine operators' health insurance. k. Depreciation on administrative offices 1. Cost of designing new plant layout. m. Jet engines......... ****** 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. $ 240 $ 100 40 35 15 $ 620 $ 30 $ 120 $ 260 S 10 $ 60 $ 170 $1,400 555 Requirements 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. (Hint: Set up a column for each type of cost.) What is the total for each type of cost? CHAPTER 2
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