Question
Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio
Bell Company, a manufacturer of audio systems, started its production in October 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 factory. 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 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,320 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $3,710. Factory janitorial costs are $1,570 monthly. Advertising costs for the audio system will be $9,130 per month. The factory building depreciation expense is $6,240 per year. Property taxes on the factory building will be $8,400 per year.
Assuming that Bell manufactures, on average, 1,410 audio systems per month, enter each 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. Product Costs Direct Labor Direct Materials Cost Item Manufacturing Overhead Period Costs iw materials 'ages for workers ent on equipment direct materials ictory supervisor's salary nitorial costs Ivertising epreciation on factory building operty taxes on factory building
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