Answer:
1.
a. Airplane seats is classified as Direct material $220
b. Production supervisors' salaries is classified as Indirect Labour $100
c. Depreciation on forklift is classified as Other Manufacturing Overhead $30
d. Machine lubricants classified as Indirect Material $40
e. Factory janitors' wages classified as Indirect labour $35
f. Assembly workers' wages classified as Direct Labour $650
g. Property tax on corporate marketing offices classified as Period total $15
h. Plant utilities classified as other Manufacturing Overhead $190
I. Cost of warranty repairs classified as Period total $245
j. Machine operators' health insurance classified as Direct Labour $60
k. Depreciation on administrative offices classified as Period total $20
l. Cost of designing new plant layout classified as Period total $180
m. Jet engines classified as Direct material $1,700
1b.Total
Total Direct material $1,920
Total Direct labor $710
Total Indirect material$40
Total Indirect labor $135
Total Other Manufacturing Overhead $220
Total Period Total $460
2.Total manufacturing overhead costs $395
3.Total inventoriable product costs $3,025
4.Total prime costs $2,630
5.Total conversion costs $1,105
6.Total period costs $460
Explanation
1. Classification of each cost and the total for each type of cost
a. Airplane seats is classified as Direct material of the amount of $220
b. Production supervisors' salaries is classified as Indirect Labour of the amount of $100
c. Depreciation on forklift is classified as Other Manufacturing Overhead of the amount of $30
d. Machine lubricants classified as Indirect Material of $40
e. Factory janitors' wages classified as Indirect labour of $35
f. Assembly workers' wages classified as Direct Labour of $650
g. Property tax on corporate marketing offices classified as Period total of $15
h. Plant utilities classified as other Manufacturing Overhead of $190
I. Cost of warranty repairs classified as Period total of $245
j. Machine operators' health insurance classified as Direct Labour of $60
k. Depreciation on administrative offices classified as Period total of $20
l. Cost of designing new plant layout classified as Period total of $180
m. Jet engines classified as Direct material of $1,700
TOTAL for each of the costs
Total Direct material $1,920
($220+$1,700)
Total Direct labor $710
($650+$60)
Total Indirect material$40
Total Indirect labor $135
($100+$35)
Total Other Manufacturing Overhead $220 ($30+$190)
Total Period Total $460
($15+$245+$20+$180)
2.Calculation for the of the total manufacturing overhead costs
Using this formula
Manufacturing overhead costs=Indirect labor + Indirect materials + Other Manufacturing overhead
Let plug in the formula
Total manufacturing overhead costs=
$135 + $40 + $220
Total manufacturing overhead costs= $395
3.Calculation for the total inventory product costs.
Using this formula
Total inventoriable costs=Direct materials + Direct labor + Manufacturing overhead
Let plug in the formula
Total inventoriable product costs$1,920 + $710 + $395
Total inventoriable product costs= $3,025
4.Calculatation for total prime costs.
Using this formula
Prime costs=Direct materials + Direct labor
Prime costs=$1,920 + $710
Total prime costs=$2,630
5.Calculation for the total of the conversion costs.
Using this formula
Total conversion costs=Direct labor + Manufacturing overhead
Total conversion costs=$710 + $395
Total conversion costs= $1,105
6. Calculation for total period costs.
Using this formula
Total period costs=($15+$245+$20+$180)
Total period costs=$460
Property tax on corporate marketing offices classified as Period total of $15
Cost of warranty repairs classified as Period total of $245
Depreciation on administrative offices classified as Period total of $20
Cost of designing new plant layout classified as Period total of $180
