Question

95% 11:32 PM Sun Jan 20 PA1-4 Classifying Costs; Calculating Total Costs; Identifying Impact of Misclassification [LO 1-4 Suzie Whitson, has designed a new type of outdoor toy that helps chidren learn basic concepts such as colors, numbers, and Sužie's product will target two groups day care centers in warm clmates and home school programs. Her company is Jifly Jet and ast month follow s 3,150 1.140 30.200 2.150 570 840 3.640 200 5,030 4,010 295 1,260 1.200 2,030 7,800 es paid to as sembly workers supervisce's salary ssalary Pasuc bibing Paint Sales commissions Factory insurance Depreciation on cutting machines Wages paid to pairvers 1, Identity 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 diredt materials (DM), drect labor (DL), or manufacturing overhead-(MOH) (Select "NA" wherever necessary.) Factory rent Wages paid to assembly workers Screws Utlities for faciory Product ђаон President's salary Plastic tubing Paint eriod Depreciation on ounrg machines Wages paid 1o pairvers 2. Determine the total oost for each of the following: a. Direct Materials Direct Labor Cost Conversion Cost Total Product Cost

Answer 1

Answer to Requirement 1:

Answer to Requirement 2:

Direct Materials = Plastic tubing
Direct Materials = $4,010

Direct Labor = Wages paid to assembly workers + Wages paid to painters
Direct Labor = $30,200 + $7,800
Direct Labor = $38,000

Manufacturing Overhead = Factory rent + Screws + Utilities for factory + Assembly supervisor’s salary + Sandpaper + Paint + Factory insurance + Depreciation on cutting machines
Manufacturing Overhead = $3,150 + $570 + $840 + $3,640 + $200 + $295 + $1,200 + $2,030
Manufacturing Overhead = $11,925

Prime Cost = Direct Materials + Direct Labor
Prime Cost = $4,010 + $38,000
Prime Cost = $42,010

Conversion Cost = Direct Labor + Manufacturing Overhead
Conversion Cost = $38,000 + $11,925
Conversion Cost = $49,925

Total Product Cost = Direct Materials + Direct Labor + Manufacturing Overhead
Total Product Cost = $4,010 + $38,000 + $11,925
Total Product Cost = $53,935