Classifying Costs; Calculating Total Costs; Identifying Impact of Misclassification Assume that Suzie Whitson (PA18-2) has decided to begin production of her outdoor childrens game. Her company is Jiffy Jet where costs for last month follow.

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 direct materials (DM), direct labor (DL), or manufacturing overhead (MOH).

2. Determine the total amount for each of the following.

a. Direct material.

b. Direct labor.

c. Manufacturing overhead.

d. Prime cost.

e. Conversion cost.

f. Total product cost.

3. Suppose all period costs were incorrectly identified as product costs. What impact could that have on Jiffy Jets financial statements? Be specific.

Answer rating: 100% (QA)

Identifying Costs as Product or Period Costs Raw materials used in production Product Cost Direct Materials DM Wages of assembly line workers Product ... View the full answer