Question
Sunland, Inc., manufactures clamps used in the overhead bin latches of several leading airplane models. Charles Wilson, president of Sunland, Inc., has gathered the following
Sunland, Inc., manufactures clamps used in the overhead bin latches of several leading airplane models. Charles Wilson, president of Sunland, Inc., has gathered the following cost information from the company's accounting records for the latest month of operations.
| Advertising | $21,000 | ||
| Fire insurance premium for the factory building | $6,250 | ||
| Sales office utilities | $2,000 | ||
| Air filters for the buffing machines used to produce the clamps | $1,875 | ||
| Aluminum used to produce the clamps | $39,000 | ||
| Rent on the factory building | $8,500 | ||
| Freight to ship the clamps to customers | $3,125 | ||
| Sales department executives' salaries | $41,500 | ||
| Production supervisors' salaries | $21,500 | ||
| Assembly line workers' wages | $64,000 |
(a) Calculate the total period costs for the month.
| Total period costs |
(b) Calculate the total product costs for the month.
| Total product costs |
(c) Calculate the amount of manufacturing overhead incurred for the month.
| Manufacturing overhead incurred |
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Payroll Accounting
Authors: Bernard J. Bieg, Judith Toland
21st Edition
1111531056, 978-1111531058
