Your friend, Suzie Chang, 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 1,300 Factory insurance 1,180 2,050 Depreciation on cutting machines Wages paid to painters 8,300 Assume that Suzie Chang has decided to begin production of her outdoor children's toy. $ 3,110 1,090 Req 1 and 2 31,000 2,160 Req 3 Required: 1 & 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. Assumes that screws, sandpaper, and paint are not worth the effort to trace to specific units. 3. Determine the total cost for each of the following: 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 g. Total period cost h. Total variable cost i. Total fixed cost 530 830 3,510 120 Complete this question by entering your answers in the tabs below. 5,090 4,110 235
Your friend, Suzie Chang, 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 1,300 Factory insurance 1,180 2,050 Depreciation on cutting machines Wages paid to painters 8,300 Assume that Suzie Chang has decided to begin production of her outdoor children's toy. $ 3,110 1,090 Req 1 and 2 31,000 2,160 Req 3 Required: 1 & 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. Assumes that screws, sandpaper, and paint are not worth the effort to trace to specific units. 3. Determine the total cost for each of the following: 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 g. Total period cost h. Total variable cost i. Total fixed cost 530 830 3,510 120 Complete this question by entering your answers in the tabs below. 5,090 4,110 235
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Your friend, Suzie Chang, 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
1,300
Factory insurance
1,180
2,050
Depreciation on cutting machines
Wages paid to painters
8,300
Assume that Suzie Chang has decided to begin production of her outdoor children's toy.
$ 3,110
1,090
Req 1 and 2
31,000
2,160
Req 3
Required:
1 & 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. Assumes that screws, sandpaper, and paint are not worth the effort to trace to specific units.
3. Determine the total cost for each of the following:
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
g. Total period cost
h. Total variable cost
i. Total fixed cost
530
830
3,510
120
Complete this question by entering your answers in the tabs below.
5,090
4,110
235
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Step 1: Introduce to variable cost and fixed cost
VIEWStep 2: Working for direct materials, direct labor and manufacturing overhead
VIEWStep 3: Working for prime cost and conversion cost
VIEWStep 4: Working for total product cost and total period cost
VIEWStep 5: Working for total variable cost and total fixed cost
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