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Answer :
In an airplane seats manufacturing company, the cost of airplane seats is a direct material cost that forms part of the total cost of production. The total cost of production is the sum of all costs incurred in manufacturing the product. The other costs include production supervisor’s salaries, depreciation on forklifts in factory.
Machine lubricants, factory janitors’ wages and assembly workers’ wages.Direct materials are the costs of the materials that are used in the production of a product. Direct materials are one of the three major categories of product costs that must be accounted for in the accounting system.
Direct materials are easy to trace to a product, and thus the cost of the materials can be allocated to the product easily. This means that airplane seats have a direct impact on the final cost of the product.
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