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. 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 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 S 3,200 1,000 30,000 2,000 500 900 3,500 150 6.000 4,200 250 1.200 1,000 2,000 7,500 Required: 1. 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). (Select "NA" wherever necessary.) 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

Answer 1

| Answer: - LOT Identify each of the cost os follows: particulary Type of lost factory veut Product cost Company advertising Period Cost Wages paid to assembly workers Product cost Depreciation for sales person's vehciley period cost screws product cost utilities for factory product cost Alsembly Supervisor's salary Prodent cost sand paper product Cost president's salary Period cost plastic tubing product cost paint Sales Commissions product cost Period cost Factory Insurance Product of Depreciation on cutting Maching Product cost Wage paid to painters product cost I classify manufacturing over head INA Direct labor NA manufacturing overhead manufacturing overhead manufacturing overhead Manufacturing overhead INA birect materials manufacturing overhead NA Manufacturing overhead Manufacturing overhead Dirut labor I I particulars a) Direct materials (A) 6) Divut Labor ) 30000+ 7500) KC) Manufacturing overheads @ (a) prime cost @= A+B) |) Conversion con (E=B+C) (6) Total Product cost (G=D+C). Working Moley's Amount $4,200 $37,500 $11,500 $41,700 $49000 $53200 pot 500+900+ 3500+ 150+250 +1000 + 9000 = $11,500