Question

Problem II: (21%) Boeing Aircrafts Inc. manufactures clamps used in the overhead bin latches several leading airplane models. Simon Wells the president of Boeing Aircrafts has gathered the following cost information from the accounting records for the latest month of operations. Advertising $20,000 Fue insurance premium for the factory building 5.000 Sales office utilities 2,000 Air filters for the buffing machines used to produce the clamps 1.500 Aluminum used to produce the clamps 30,000 Rent on the factory building 8,000 Freight to ship the clamps to customers 2,500 Sales department executives salaries 34.000 Production supervisor salaries IR.000 Assembly line workers' wages 48,00 Required: Calculate the total period costs for the month. b) Calculate the amount of manufacturing overhead incurred for the month. Calculate the total product costs for the month.

Answer 1

Pjo Answers @ calculate the tolal period costs for the month: Tolal period costi - Advertising + sales of tice etilities + freight to ship the camps to customers + sales department Executives salaries. = $20,000+2,000+2,500 + 34,000 = $58500 . The tolal period costs for the month= $58,500 ☺ calculate the amount or manufacturing, ovskead; manufatturida ovohead = Air filters for the bubbing machines used to Produce the clamps + production Supowisor's salary #fire însunanee paremium for the factory . . building + Rent on the factory building

= 1,500+ 18,000+5,000+ 8,000 = $32,500 .". The amount o mare fasteering overhead = $32,500 © calcubiecte o the total produet costs total produet cost = Assembly Line workeng loage + Ais fidfers for the bubbing machines used to 1. Produce the lamps + Aluminum used to precluce ethe elamps +five insurance premium for the factory building + Rent- on the factory building + production suporvisor's salary. = 48,000 + 1,500+30,000 + 5,000+8,000+ 18,000 = $110,500 sito ted product. cost = $ 110,500

expenses : pouod costs * selling jadministrative and o * Expenses related to factory or production are placed under manufacturing overhead costs. * manufacturing overhead is the part of product cast, so somo Expenses d produet cost are manufacturing overhead also - -