Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bell Company, a manufacturer of audio systems, started its production in October 2020. For the preceding 3 years, Bell had been a retailer of audio

Bell Company, a manufacturer of audio systems, started its production in October 2020. 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 material costs for an audio system will total $76 per unit. Workers on the production lines are on average paid $13 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 $5,600 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $3,800. Factory janitorial costs are $2,200 monthly. Advertising costs for the audio system will be $8,700 per month. The factory building depreciation expense is $6,000 per year. Property taxes on the factory building will be $9,600 per year.

Assuming that Bell manufactures, on average, 1,000 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

Cost Item

Direct Materials

Direct Labor

Manufacturing Overhead

Period Costs

Raw materials

$

$

$

$

Wages for workers
Rent on equipment
Indirect materials
Factory supervisors 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

Auditing A Complete Guide

Authors: Gerardus Blokdyk

2023rd Edition

1038805538, 978-1038805539

More Books

Students also viewed these Accounting questions

Question

What strategies might you use to support learning in English?

Answered: 1 week ago