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	$	3,110
Company advertising		1,070
Wages paid to assembly workers		31,700
Depreciation for salespersons’ vehicles		2,150
Screws		560
Utilities for factory		820
Assembly supervisor’s salary		3,600
Sandpaper		195
President’s salary		5,180
Plastic tubing		4,130
Paint		210
Sales commissions		1,310
Factory insurance		1,120
Depreciation on cutting machines		2,120
Wages paid to painters		7,500

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	$	3,110
Company advertising		1,070
Wages paid to assembly workers		31,700
Depreciation for salespersons’ vehicles		2,150
Screws		560
Utilities for factory		820
Assembly supervisor’s salary		3,600
Sandpaper		195
President’s salary		5,180
Plastic tubing		4,130
Paint		210
Sales commissions		1,310
Factory insurance		1,120
Depreciation on cutting machines		2,120
Wages paid to painters		7,500

 

Transcribed Image Text:

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 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 rating: 100% (QA)

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