(a.be) Look at number 5 below in other info (d) Assume you have: No beginning or ending raw materials inventory. No beginning or endings work in process inventory. Prepare a projected cost of goods manufactured schedule for the first month of operations. (e) Assume 10,000 helmets will be produced the first month of operations. (0 What type of cost accounting (job cost or process costing) (g) Explain how you would assign costs in either job cost or process costing costs) (h) Classify your cost as Variable Costs or Fixed Costs. (NO mixed (i) Compute unit variable cost (J) Estimated number of helmets sold in December 2017-8,000 helmets Projected wholesale selling price = $40 per helmet Find: unit contribution margin And Contribution Margin ratio (k) Find: Breakeven point in dollars And breakeven point in units (L) Prepare operating Budgets: Sales Budget (8000 units) Production budget: Desired ending finished goods units: 2,000 Beginning finished goods units: Direct Materials Budget: unit to be produced: 10,000 DM/unit: 1KG Cost per KG: $7 Desire ending DM- 0 Direct Labor Budget: Direct labor time (hours) per unit: 0.35 Direct labor cost per hour: $20 Selling and Administrative Expenses budget. Of COSF Oank m proce Bea Less udgeted Income Statement. (m) Prepare: Cash budget (n) Prepare: Monthly flexible manufacturing costs budget (e) Identify one potential cause of materials, direct labor, and MOH variances for your product (p) Determine the cash payback period (9) Identify any nonfinancial factors that should be considered your business venture . before commencing Other Info 1-Bicycle Helmet Company's selling price is $40.00 per device. 2-Each helmet requires 1 kilogram (KG) of material, at a unit cost of $7.00 per kg, to produce. 3-lt takes 0.35 direct labor hours to produce one helmet, at a unit price of $20 per hour. 4-Income tax expense is 45% of income from operation. 5-The types of manufacturing and period costs that would be incurred in making helmet, and assumed total dollar amounts are as follows: Rent on production equipment: $6,000 a. b. Insurance on factory building: $1,500 Raw Materials: $70,000 c. d. Utility costs for the factory: $900 Office supplies: $300 e. f. Direct labor: $70,000 Depreciation on office equipment: $800 g. (Lent on D- Miscellaneous manufacturing items: $1,000 Administrative salaries: $15,500 i Property taxes on factory building: $400 k Advertising for the Helmets: $11,000 Sales commissions: $40,000 1. m. Depreciation on factory building: $1,500 Professional fees: $500 n. Research and development: $10,000 0. COMPREHENSIVE PROBLEM: CHAPTERS 19 TO 25 s Vau would like to start a businea manulacturing a unique model of hiew ration for an interview with the bank to discuss your financing needs, you need so prov ing information. A number of assumptions are required: clearly note all anmprions that Instructions dentify the types of costs that would likely be involved (b) Set up five columns as indicated. in making this produt Product Costs Direct Direct Labor Manufacturing Overhead Materials Item Perlod Co Clhasifs the costs vou identified in (a) into the manufacturing cost classificatie direct materials, direct labor, and manulacturing overbead) and period cots (e) Assign hypothetical monthly dollar figures to the costs you identified in (a) and ume u have no raw materials or work in process beginning or ending iavet a projected cost of goods manufactured schedule for the first month of operation fe) Project the number of helmets yoi expect to produce the first momh of operaticns t to produce one bicycle helmet. Review the result to ensure it is reasonahle Fa part (e) and adjust the monthly dollar figures you assigned accordinghs Continuing Problems 1185 (o What type of cost accounting system will you likely use-job order or process costing? in) Eanlain how vou would assign costs in either the job order or process costing svstem you plan touse. ) Classify vour costs as either variable or fixed costs. For simplicity, assign all costs to either variable or fived, assuming there are no mixed costs, using the format shown. Total Costs Fixed Costs Varlable Costs Item O Compute the unit variable cost, using the production number you determined in (e) O Project the number of helmets you anticipate selling the first month of operations, Set a unit sell- ing price, and compute both the contribution margin per unit and the contribution margin ratio (k) Determine vour break-even point in dollars and in units. O Prepare projected operating budgets (sales, production, direct materials, direct labor, manulac turing overhead, selling and administrative expense, and income statement). You will need to make assumptions for cach of the following: Quantity of direct materials required to produce one heimet; onst per unit of quantitv, desired ending direct materials (assume none) Direct labor time required per helmet; direct labor cost per hour Income tax expense is 45e of income from operations Direct materials budget: Direct labor budget: Budgeted income statement: tm) Pepare a cash budget for the month. Assume the pencentage of sales that will be collecied trem cus omens is 75, and the percentage of direst materials that will be pald in the curent month is 75 in Delermine a relevant range of activity using the mumber of helmets produced as your actiY mdex. Recast your manufacturine ouerhead budeet into a llexible monthly budget for two a tional activity levels. fo) dentily one potential cause of materials, direct labor, and mamufacturing overhead variances for your product. (p) Assume that you wish to purchase production equipment that costs $720,000. Determine the cash payback period, utilizing the monthly cash flow that you computed in part (m) muliplied by 12 months (for simplicity). (q) Identify any nonfinancial factors that should be considered before commencing your buiness venture