Question
Answer this question fully: Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors,
Answer this question fully:
Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzies product will target two groups: day care centers in warm climates and home school programs. Her company is Jiffy Jet and costs for last month follow:
Factory rent | $ | 3,200 |
Company advertising | 1,000 | |
Wages paid to assembly workers | 30,000 | |
Depreciation for salespersons vehicles | 2,000 | |
Screws | 500 | |
Utilities for factory | 900 | |
Assembly supervisors salary | 3,500 | |
Sandpaper | 150 | |
Presidents salary | 6,000 | |
Plastic tubing | 4,200 | |
Paint | 250 | |
Sales commissions | 1,200 | |
Factory insurance | 1,000 | |
Depreciation on cutting machines | 2,000 | |
Wages paid to painters | 7,500 | |
Assume that Suzie Whitson has decided to begin production of her outdoor childrens toy.
Required: 1 & 2. Identify each of the preceding costs as either a product or a period cost. If the cost is a product cost, decide whether it is for direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and also identify each of the preceding costs as variable or fixed cost.
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