Kanjo Company specializes in manufacturing motorcycles. The company has enough orders to keep the factory production at 1,000 motorcycles per month. Kanjo's monthly manufacturing cost and other expense data are as follows.

Instructions

(a) Prepare an answer sheet with the following column headings.

Enter each cost item on your answer sheet, placing the dollar amount under the apropriate headings. Total the dollar amounts in each of the columns.

(b) Compute the cost to produce one motorcycle.

Transcribed Image Text:

Maintenance costs on factory building Factory manager's salary Advertising for motorcycles Sales commissions Depreciation on factory building Rent on factory equipment Insurance on factory building Raw materials (frames, tires, etc.) Utility costs for factory Supplies for general office Wages for assembly line workers Depreciation on office equipment Miscellaneous materials (lubricants, solders, etc.) $ 300 5,000 10,000 5,000 700 5,000 3,000 20,000 800 200 40,000 500 1,000