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An airline manufacturer incurred the following costs last month (in thousands of dollars):

13/11/2020 Client: arwaabdullah Deadline: 24 Hours

Week 1 Assignment
DeVry University
ACCT346 Weekly Assignment
Week 1
Directions: Your assignment this week is to answer the four questions below. Please note that Question 4 contains multiple parts. Please show your work for full credit on Questions 4b - 4e.
1. Identify whether each of the items below is a Product Cost or Period Cost: (1/2 point each, total 5 points)
Factory insurance Product
Interest on bank loan
Eggs, salt, water used for baking
Depreciation on bake ovens
Paper wrappers for bread
Delivery truck costs
Advertising costs
Factory supervisor salaries
Sales Commissions
Flour used in baking bread
2. Identify whether each of the items below is a Direct Cost or Indirect Cost: (1/2 point each, total 5 points)
Factory insurance Indirect
Baker's wages
Eggs used for baking
Depreciation on bake ovens
Paper wrappers for bread
Cleaning materials for bake ovens
Utilities used in factory
Factory supervisor salaries
Small amount of salt used
Flour used in baking bread
3. Identify whether each of the below is a Fixed Cost or Variable Cost: (1/2 point each, total 5 points)
Shipping costs for bread Variable
Cost of fuel for delivery truck
Factory rent
Factory insurance
Maintenance on delivery truck
Sales commissions
Hourly wages paid to baker's assistant
Oven depreciation
Cost of fruit for cake topping
Factory utilities
4. Classify each as direct material, direct labor, indirect labor, indirect labor, other manufacturing overhead or period cost, and then answer the 5 questions below: 4a. Classify each cost (the first one is done for you): (5 points total)
An airline manufacturer incurred the following costs last month (in thousands of dollars): Direct Material Direct Labor Indirect Material Indirect Labor Other Manufacturing Overhead Period Cost
a. Depreciation on forklifts ........................................................................... $60 $60
b. Property tax on corporate marketing office ............................................. $30
c. Cost of warranty repairs ............................................................................ $220
d. Factory janitors’ wages ............................................................................. $10
e. Cost of designing new plant layout .......................................................... $190
f. Machine operators’ health insurance ....................................................... $40
g. Airplane seats ........................................................................................... $270
h. Depreciation on administrative offices ..................................................... $70
i. Assembly workers’ wages ......................................................................... $670
j. Plant utilities ............................................................................................. $110
k. Production supervisors’ salaries ................................................................ $160
l. Jet engines ................................................................................................ $1,100
m. Machine lubricants .................................................................................... $20
Then, answer the below questions:
4b. How much are total manufacturing overhead costs? (5 points)
4c. How much are total inventoriable product costs? (5 points)
4d. How much are total prime costs? (5 points)
4e. How much are total conversion costs? (5 points)

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