Question
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
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 | $ | 3,110 |
Company advertising | 1,190 | |
Wages paid to assembly workers | 30,800 | |
Depreciation for salespersons vehicles | 2,180 | |
Screws | 575 | |
Utilities for factory | 830 | |
Assembly supervisors salary | 3,610 | |
Sandpaper | 105 | |
Presidents salary | 5,150 | |
Plastic tubing | 4,060 | |
Paint | 235 | |
Sales commissions | 1,280 | |
Factory insurance | 1,050 | |
Depreciation on cutting machines | 2,050 | |
Wages paid to painters | 8,500 | |
Assume that Suzie Whitson has decided to begin production of her outdoor childrens toy.
Required: 1 and 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. 3. Determine the total cost for each of the following:
dentify 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. (Select "NA" wherever necessary.)
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Determine the total cost for each of the following:
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