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 $ 3,020 Company advertising 1,190 Wages paid to assembly workers 30,500 Depreciation for salespersons vehicles 2,050 Screws 510 Utilities for factory 860 Assembly supervisors salary 3,530 Sandpaper 135 Presidents salary 5,140 Plastic tubing 4,080 Paint 265 Sales commissions 1,210 Factory insurance 1,170 Depreciation on cutting machines 2,160 Wages paid to painters 7,800 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:
Factory rent | $ | 3,020 |
Company advertising | 1,190 | |
Wages paid to assembly workers | 30,500 | |
Depreciation for salespersons vehicles | 2,050 | |
Screws | 510 | |
Utilities for factory | 860 | |
Assembly supervisors salary | 3,530 | |
Sandpaper | 135 | |
Presidents salary | 5,140 | |
Plastic tubing | 4,080 | |
Paint | 265 | |
Sales commissions | 1,210 | |
Factory insurance | 1,170 | |
Depreciation on cutting machines | 2,160 | |
Wages paid to painters | 7,800 |
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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started