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Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as…

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 be targeted for two groups: day care centers in warm climates and home school programs for which few activity-intensive programs aim at toddlers’ developmental processes. Suzie has come to you for help in getting her idea off the ground. She has never managed a business before and is not sure what functions she will need to perform to make her venture successful. Assume that Suzie Whitson has decided to begin production of her outdoor children’s toy. Her company is Jiffy Jet and costs for last month follow. Factory rent $ 3,000 Company advertising 1,000 Wages paid to assembly workers 30,000 Depreciation for salespersons’ vehicles 2,000 Screws 500 Utilities for factory 800 Assembly supervisor’s salary 3,500 Sandpaper 150 President’s salary 5,000 Plastic tubing 4,000 Paint 250 Sales commissions 1,200 Factory insurance 1,000 Depreciation on cutting machines 2,000 Wages paid to painters 7,500 Note: It is believed that screws, sandpaper and paint are not worth the effort to trace to specific units. Requirement 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 Requirement 2: Determine the total cost for each of the following. (Omit the “$” sign in your response.) a. Direct material $ b. Direct labor $ c. Manufacturing overhead $ d. Prime cost $ e. Conversion cost $ f. Total product cost $

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