90.2K

Verified Solution

Link Copied!

Company background: Oscar Tame is the CEO of AnyDoppler Inc. His company manufactures ultra$-$thin speaker pads. Each pad has a wire that can connect to an iPod. The pad can be placed on any surface $($e$.$g$.$ wall, table or window$)$ and utilized the material properties of the surface to turn it into a speaker that transmits sounds when activated. Oscar hired a plant manager, Sybil Vain, to oversee factory operations. There are $25$ assembly line workers who work $8$ hours a day, for $4$ days a week, for $50$ weeks a year. The factory has a high$-$tech inventory system that is able to trace raw materials to each finished good accurately and inexpensively. At the beginning of the year, Oscar purchased three company cars for the sales team. Each car cost the company $$45,000.$

Data provided:

$\backslash$table$[[$Plant manager salary,$$,150,000],[$Factory rent,$$,36,000],[$Purchases of factory capital assets,$$,400,000],[$Raw materials used,$$,300,000],[$Depreciation expense, factory equipment,$$,20,000],[$Utility expense, factory,$$,15,000],[$Depreciation expense, sales vehicles,$$,7,000],[$Marketing expense,$$,250,000],[$CEO salary,$$,225,000],[$Receptionist salary,$$,55,000],[$Labor rate per hour,$$,37\mathrm{.}00]]$

Part a$)$ Calculate AnyDoppler's product and period costs. Explain your reasons for identifying costs as either product of period costs.

Product costs:

Period costs:

My reasons for identifying costs as either product or period costs are...

Answer & Explanation Solved by verified expert

See Answer