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Berca Boards makes reasonably high-end skateboards which sell for $400 each. The production process is fairly simple and involves assembling components purchased from various suppliers.
Berca Boards makes reasonably high-end skateboards which sell for $400 each. The production process is fairly simple and involves assembling components purchased from various suppliers. Since each skateboard only takes one hour to assemble, there is essentially no work-in-process inventory. Becca'aBoards has the capacity to make 2,000 skateboards per year. Costs for the skateboard components are: Deck $40.00 Trucks Wheels Bearings Bolts, etc. Hardware package - net $43.00 42.00 20.00 15.00 120.00 $160.00 Total Each board should take one hour of direct labor to assemble. Direct labor wages are $55 per hour. Other manufacturing costs on a monthly basis are: Rent $2,500.00 Insurance 500.00 Utilities 200.00 Miscellaneous 300.00 $3,500.00 Inventory balances are as follows (SARA'Auses FIFO inventory cost flow assumption): Units Dollars 17172020 250 $10,000 12/31/2020 350
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