Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your friend, Maria, has designed a new type of fire extinguisher that is very small and easy to use. It will target two groups

image text in transcribedimage text in transcribed

Your friend, Maria, has designed a new type of fire extinguisher that is very small and easy to use. It will target two groups of people: people who have trouble operating heavy, traditional extinguishers and people who need to store extinguishers in small spaces such as a vehicle. Assume that Maria has decided to begin production of her fire extinguisher. Her company is Blaze Be Gone, whose costs for last month follow. Factory rent Company advertising Wages paid to assembly workers Depreciation for salespersons' vehicles Screws Utilities for factory Production supervisor's salary Sandpaper President's salary Sheet metal Paint Sales commissions Factory insurance Depreciation on factory machinery Wages paid to painters $ 2,000 500 25,000 1,000 250 800 4,000 150 6,000 7,500 750 1,700 2,000 5,000 5,500 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. Assumes that screws, sandpaper, and paint are not worth the effort to trace to specific units. 3. Determine the total amount for each of the following: Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 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. Assumes that screws, sandpaper, and paint are not worth the effort to trace to specific units. Note: Select "NA" wherever necessary. Factory rent Costs Company advertising Wages paid to assembly workers Depreciation for salespersons' vehicles Screws Utilities for factory Production supervisor's salary Sandpaper President's salary Sheet metal Paint Sales commissions Factory insurance Depreciation on factory machinery Wages paid to painters Type of Cost Cost Head Cost Classification < Req 1 and 2 Req 3 > Show less

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th edition

1118096894, 978-1-11921511, 978-1118096895

More Books

Students also viewed these Accounting questions