Question

Check my work 8 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: 1.25 points eBook 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 $ 3,100 1,080 30,300 2,150 555 845 3,650 135 5,190 4,010 245 1,330 1,190 2,190 7,850 Print References 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 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 Reg 3 Identifv 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 Mc Graw Hill Education < Prev 8 of 8 ! Next

Answer 1

1 and 2
Costs	Type of Cost	Cost Head	Cost Classification
Factory rent	Product	MOH	Fixed
Company advertising	Period	NA	Fixed
Wages paid to assembly workers	Product	DL	Variable
Depreciation for salespersons' vehicles	Period	NA	Fixed
Screws	Product	MOH	Variable
Utilities for factory	Product	MOH	Variable
Assembly supervisor's salary	Product	MOH	Fixed
Sandpaper	Product	MOH	Variable
President's salary	Period	NA	Fixed
Plastic tubing	Product	DM	Variable
Paint	Product	MOH	Variable
Sales commissions	Period	NA	Variable
Factory insurance	Product	MOH	Fixed
Depreciation on cutting machines	Product	MOH	Fixed
Wages paid to painters	Product	DL	Variable

(a)
Particulars	Amount (in $ )
Plastic tubing	$ 4,010
Direct Materials	$ 4,010
(b)
Particulars	Amount (in $ )
Wages paid to assembly workers	$ 30,300
Wages paid to painters	$ 7,850
Direct labor	$ 38,150
(c )
Particulars	Amount (in $ )
Factory rent	$ 3,100
Screws	$ 555
Utilities for factory	$ 845
Assembly supervisors salary	$ 3,650
Sandpaper	$ 135
Paint	$ 245
Factory insurance	$ 1,190
Depreciation on cutting machines	$ 2,190
Manufacturing overhead	$ 11,910
(d)
Prime cost ( $ 4,010 + $ 38,150 )	$ 42,160
(e)
Conversion cost ( $ 38,150 + $ 11,910 )	$ 50,060
(f)
Total product cost ( $ 4,010 + $ 38,150 + $ 11,910 )	$ 54,070
(g)
Particulars	Amount (in $ )
Company advertising	$ 1,080
Depreciation for salespersons vechicles	$ 2,150
President's salary	$ 5,190
Sales commission	$ 1,330
Total Period cost	$ 9,750
(h)
Particulars	Amount (in $ )
Company advertising	$ 1,080
Wages paid to assembly workers	$ 30,300
Screws	$ 555
Utilities for factory	$ 845
Sandpaper	$ 135
Plastic tubing	$ 4,010
Paint	$ 245
Sales commission	$ 1,330
Wages paid to painters	$ 7,850
Total variable cost	$ 46,350
(i)
Particulars	Amount (in $ )
Factory rent	$ 3,100
Depreciation for salespersons vechicles	$ 2,150
Assembly supervisors salary	$ 3,650
President's salary	$ 5,190
Factory insurance	$ 1,190
Depreciation on cutting machines	$ 2,190
Total Fixed cost	$ 17,470