Question 4 only
Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie's product will target two groups: day care centers in warm climates and home school programs. Suzie has come to for help in getting her idea off the ground. Assume that Suzie Whitson has decided to begin production of her outdoor children's toy. Her company is Jiffy Jet and costs for last month follow: Cost Description Dollar Amount Direct materials (DM), ( Product or Direct labor (DL), or Period Manufacturing overhead (MOH) Variable or Fixed Factory rent $3,200 Product MOH Fixed Company advertising 1,000 Wages paid to assembly workers 30,000 Depreciation for salespersons' vehicles 2,000 Screws 500 Utilities for factory 900 Assembly supervisor's salary 3,500 Sandpaper 150 President's 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 Required: Copy the above chart on to a blank Word document. Use the copied chart to answer Requirements 1 & 2. Answer Requirements 3 & 4 on the same Word document. Upload the Word document for assignment submission. 1. Identify each of the preceding costs as either 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). The first line (Factory rent) is done as an example. 24 points 2. Identify each of the preceding costs as variable or fixed. The first line (Factory rent) is done as an example. 24 points 3. Determine the total cost for each of the following: 28 points (Please note, you must show your work to receive full credit) A. Direct materials B. Direct labor C. Manufacturing overhead D. Prime cost E. Conversion cost F. Total product cost G. Total period cost H. Total variable cost 1. Total fixed cost 4. Suppose all period costs were incorrectly identified as product costs. What impact could that have on Jiffy Jet's financial statements? Use a minimum of two sentences to explain your answer. 24 points Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie's product will target two groups: day care centers in warm climates and home school programs. Suzie has come to for help in getting her idea off the ground. Assume that Suzie Whitson has decided to begin production of her outdoor children's toy. Her company is Jiffy Jet and costs for last month follow: Cost Description Dollar Amount Direct materials (DM), ( Product or Direct labor (DL), or Period Manufacturing overhead (MOH) Variable or Fixed Factory rent $3,200 Product MOH Fixed Company advertising 1,000 Wages paid to assembly workers 30,000 Depreciation for salespersons' vehicles 2,000 Screws 500 Utilities for factory 900 Assembly supervisor's salary 3,500 Sandpaper 150 President's 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 Required: Copy the above chart on to a blank Word document. Use the copied chart to answer Requirements 1 & 2. Answer Requirements 3 & 4 on the same Word document. Upload the Word document for assignment submission. 1. Identify each of the preceding costs as either 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). The first line (Factory rent) is done as an example. 24 points 2. Identify each of the preceding costs as variable or fixed. The first line (Factory rent) is done as an example. 24 points 3. Determine the total cost for each of the following: 28 points (Please note, you must show your work to receive full credit) A. Direct materials B. Direct labor C. Manufacturing overhead D. Prime cost E. Conversion cost F. Total product cost G. Total period cost H. Total variable cost 1. Total fixed cost 4. Suppose all period costs were incorrectly identified as product costs. What impact could that have on Jiffy Jet's financial statements? Use a minimum of two sentences to explain your answer. 24 points
