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 | $ | 3,200 |
| 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 | |
Required: 1. 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?
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
978-0078025914
