Question

Coronado, Inc., manufactures clamps used in the overhead bin latches of several leading airplane models. Greg Poole, president of Coronado, Inc., has gathered the following cost information from the company’s accounting records for the latest month of operations.

Advertising		$20,000
Fire insurance premium for the factory building		$5,000
Sales office utilities		$2,500
Air filters for the buffing machines used to produce the clamps		$1,600
Aluminum used to produce the clamps		$33,000
Rent on the factory building		$11,000
Freight to ship the clamps to customers		$4,500
Sales department executives’ salaries		$35,000
Production supervisors’ salaries		$18,000
Assembly line workers’ wages		$46,000

(a) Calculate the total period costs for the month.

Total period costs

$Enter the total period costs in dollars Enter the total period costs in dollarsEnter the total period costs in dollarsEnter the total period costs in dollars

(b) Calculate the total product costs for the month.

Total product costs

$Enter the total product costs in dollars Enter the total product costs in dollarsEnter the total product costs in dollarsEnter the total product costs in dollars

(c) Calculate the amount of manufacturing overhead incurred for the month.

Manufacturing overhead incurred

$Enter the amount of manufacturing overhead incurred for the month in dollars Enter the amount of manufacturing overhead incurred for the month in dollarsEnter the amount of manufacturing overhead incurred for the month in dollarsEnter the amount of manufacturing overhead incurred for the month in dollars

Answer 1

$ 20,000 $ 2,500 $ 4,500 $ 35,000 $ 62,000 $ 5,000 A 1 (a) 2 Total period costs: 3 Advertising 4 Sales office utilities 5 Freight to ship the clamps to customers 6 Sales department executives' salaries 7 Total period costs 8 9 (b) 10 Total product costs: 11 Fire insurance premium for the factory building Air filters for the buffing machines used to 12 produce the clamps 13 Aluminum used to produce the clamps 14 Rent on the factory building 15 Production supervisors' salaries 16 Assembly line workers' wages 17 Total product costs 18 19 (c) 20 Amount of manufacturing overhead: 21 Fire insurance premium for the factory building Air filters for the buffing machines used to 22 produce the clamps 23 Rent on the factory building 24 Production supervisors' salaries 25 Amount of manufacturing overhead incurred $ 1,600 $ 33,000 $ 11,000 $ 18,000 $ 46,000 $ 114,600 $ 5,000 $ 1,600 $ 11,000 $ 18,000 $ 35,600

20000 2500 4500 35000 =SUM(B3:36) 5000 A 1 (a) 2 Total period costs: 3 Advertising 4 Sales office utilities 5 Freight to ship the clamps to customers 6 Sales department executives' salaries 7 Total period costs 8 9 (b) 10 Total product costs: 11 Fire insurance premium for the factory building Air filters for the buffing machines used to produce 12 the clamps 13 Aluminum used to produce the clamps 14 Rent on the factory building 15 Production supervisors' salaries 16 Assembly line workers' wages 17 Total product costs 18 19 (c) 20 Amount of manufacturing overhead: 21 Fire insurance premium for the factory building Air filters for the buffing machines used to produce 22 the clamps 23 Rent on the factory building 24 Production supervisors' salaries 25 Amount of manufacturing overhead incurred 1600 33000 11000 18000 46000 -SUM(B11:B16) 5000 1600 11000 18000 I=SUM(B21:B24)