Question

Aircraft Assemblies, Inc., manufactures clamps used in the overhead bin latches of several leading airplane models. Scott Sykes, president of Aircraft Assemblies, 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..................... $ 2,000
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 supervisors’ salaries................. $18,000
Assembly line workers’ wages ................ $48,000

Required
a. Calculate the total period costs for the month.
b. Calculate the total product costs for the month.
c. Calculate the amount of manufacturing overhead incurred for the month.



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  • CreatedFebruary 21, 2014
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