Exercise 4-4 Crane, Inc., manufactures clamps used in the overhead bin latches o
ID: 2407114 • Letter: E
Question
Exercise 4-4 Crane, Inc., manufactures clamps used in the overhead bin latches of several leading airplane models. Greg Poole, president of Crane, Inc., has gathered the following cost information from the company's accounting records for the latest month of operations Advertising Fire insurance premium for the factory building Sales office utilities Air filters for the buffing machines used to produce the clamps $1,500 Aluminum used to produce the clamps Rent on the factory building Freight to ship the clamps to customers Sales department executives' salaries Production supervisors' salaries Assembly line workers' wages $20,000 $5,000 $2,000 $30,000 $8,000 $2,500 $32,000 $15,000 $45,000 (a) Calculate the total period costs for the month Total period costs $ (b) Calculate the total product costs for the month Total product costs $Explanation / Answer
Exercise 4-4 Req a: Total period cost: Advertising 20000 Sales office utilities 2000 Freight to Ship the customer 2500 Sales deptt executive salaries 32000 Total period cost: 56500 Req b: Total product cost: Aluminium Used (Direct Material) 30000 Assembly line wages (Direct Wages) 45000 Factory Overheads: Fire Insurance premium 5000 Air filters used in machine 1500 Rent on Factory Building 8000 Production supervisor salaries 15000 29500 Total product cost: 104500 Req c: Total Manufacturing Overheads cost: Fire Insurance premium 5000 Air filters used in machine 1500 Rent on Factory Building 8000 Production supervisor salaries 15000 Total Manufacturing Overheads cost: 29500
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