Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bell Company, a manufacturer of audio systems, started its production in ctober 2017.For the preceding 3 years, Bell had been a retailer of audio systems.

image text in transcribed

image text in transcribed

image text in transcribed

Bell Company, a manufacturer of audio systems, started its production in ctober 2017.For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment actory. Raw materials cost for an audio system will total $75 per unit Workers on the production lines are on average paid $14 per hour. An audio system usually takes S hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to 5,200 per month. Indirect materials cost $6 per system.A supervisor was hired to oversee production; her monthly salary is $3450. Factory janitorial costs are $1,770 monthly. Advertising costs for the audio system will be $8,970 per month. The factory building depreciation cxpense is $7,200 per year. Property taxes on the factory building will be $8,760 per ycar. Assuming that Bell manufactures, on average, 1450 audio systems per month, enter cach cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns Direct Materials Product Costs Direct Labor Manufacturing Overhead Period Costs Cost Item Raw materials Wages for workers Rent on equipment Indirect materials Factory supervisor's salary Janitorial costs Advertising Depreciation on factory building Property taxes on factory building Compute the cost to produce one audio system. (Round answer to 2 decimal places, e.g. 15.25.) Production cost per system

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Audit And Assurance 2022

Authors: Nick Blackwell, Emile Woolf International

1st Edition

1848439326, 978-1848439320

More Books

Students also viewed these Accounting questions