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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 $ 3,050
Company advertising 1,130
Wages paid to assembly workers 30,900
Depreciation for salespersons vehicles 2,010
Screws 570
Utilities for factory 805
Assembly supervisors salary 3,660
Sandpaper 195
Presidents salary 5,020
Plastic tubing 4,120
Paint 215
Sales commissions 1,310
Factory insurance 1,090
Depreciation on cutting machines 2,050
Wages paid to painters 8,450

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:

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. (Select "NA" wherever necessary.)

Costs Type of cost Cost head Cost classification
Factory rent
Company advertising
Wages paid to assembly workers
Depreciation for salespersons vehicles
Screws
Utilities for factory
Assembly supervisors salary
Sandpaper
Presidents salary
Plastic tubing
Paint
Sales commissions
Factory insurance
Depreciation on cutting machines
Wages paid to painters

Determine the total cost for each of the following:

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
i. Total Fixed Cost

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