Question

Homework 1 Saved Help Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes, Suzie's 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: $ 3,180 1,160 30,200 2,170 590 880 Factory rent Company advertising Wages paid to assembly workers Depreciation for salespersons' vehicles Screws Utilities for factory Assembly supervisor's salary Sandpaper President's salary Plastic tubing Paint Sales commissions Factory insurance Depreciation on cutting machines Wages paid to painters 3.690 130 5,020 4,120 295 1.320 1.100 2.190 8,400 Assume that Suzie Whitson has decided to begin production of her outdoor children's 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 of fixed cost. 3. Determine the total cost for each of the following: Complete this question by entering your answers in the tabs below. Draw 3 of 4 !!! Next >

Answer 1

Solution 1 & 2: Identification of type of cost Factory rent Company advertising Wages paid to assembly workers Depreciation for salesperson's vehicles Screws Utilities for factory Assembly supervisor's salary Sandpapaer President's salary Plastic tubics Paints Sales commission Factory insurance Depreciation on cutting machines Wages paid to painters Type of cost Classification Product cost MOH Period cost Product cost DL Period cost Product cost МОН Product cost MOH Product cost MOH Product cost MOH Period cost Product cost DM Product cost MOH Period cost Product cost MOH Product cost MOH Product cost DL Amount 3180 1160 30200 2170 590 880 3690 130 5020 4120 295 1320 1100 2190 8400

Solution 3: Calculation of total cost for each item 4120 38600 12055 42720 Direct Materials Direct Labor (30200 +8400) Manufacturing overhead (3180+590+880+3690+130+295+1100+2190) Prime cost (DM + DL) Conversion cost (DL + MOH) Total product cost (DM + DL + MOH) Total period cost (1160+2170+5020+1320) Total variable cost (W. N) Total Fixed cost (W. N.) 50655 54775 9670 45055 19390

Working Note Fixed Costs Variable Costs 3180 1160 30200 2170 590 880 3690 Factory rent Company advertising Wages paid to assembly workers Depreciation for salesperson's vehicles Screws Utilities for factory Assembly supervisor's salary Sandpapaer President's salary Plastic tubics Paints Sales commission Factory insurance Depreciation on cutting machines Wages paid to painters Total Fixed/Variable Fixed Fixed Variable Fixed Variable Fixed Fixed Variable Fixed Variable Variable Variable Fixed Fixed Variable 5020 4120 295 1320 1100 2190 8400 45055 19390