Fle Edt View History Bookmarks People Window Help ACC 2013 x

Fle Edt View History Bookmarks People Window Help ACC 2013 xM McGraw-Hill Connect Error x Ch 1 H pps Bookmarks 0 99 points Your friend, Suzie Whitson, has designed a new type of ouidoor 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 3,020 Wages paid to assembly workers Utlities for factory Presidents salary 2.040 Mlarviic subing on outting machines 1, Identifly each of the preceding costs as ether a product or a period oost It the cost is a product cost, decide whether it is for direct materials (DM), direct ator (DL). or manufacturing overhead (uoH) (Select \"NA\" wherever mecessary) Company advertsing Wages paid to assembly workens 7 3 5

Solution

Solution 2:

a. Direct material cost = Cost of plastic tubing = $4,030

b. Direct labor cost = Wages paid to assembly workers + Wages paid to painters

= $31,000 + $7,850 = $38,850

c. Manufacturing overhead = Factory rent + Screws + Utilities for factory + Assembly supervisor salary + Sandpaper + Paint + Factory insurance + Depreciation on cutting machine

= $3,020 + $580 + $840 + $3,680 + $175 + $290 + $1,180 + $2,040 = $11,805

d. Prime cost = Direct material + Direct labor = $4,030 + $38,850 = $42,880

e. Conversion cost = Direct labor + Manufacturing overhead = $38,850 + $11,805 = $50,655

f. Total product cost = Prime cost + Manufactuing overhead

= $42,880 + $11,805 = $54,685