Question
Bramble Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to
Bramble Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Brambles monthly manufacturing cost and other expense data are as follows.
Rent on factory equipment | $12,500 | |
---|---|---|
Insurance on factory building | 1,860 | |
Raw materials used (plastics, polystyrene, etc.) | 84,300 | |
Utility costs for factory | 960 | |
Supplies for general office | 380 | |
Wages for assembly-line workers | 61,700 | |
Depreciation on office equipment | 880 | |
Miscellaneous materials (glue, thread, etc.) | 1,210 | |
Factory managers salary | 6,000 | |
Property taxes on factory building | 430 | |
Advertising for helmets | 14,200 | |
Sales commissions | 10,560 | |
Depreciation on factory building | 1,640 |
(a)
Prepare an answer sheet with the following column headings. Enter each cost item on your answer sheet, placing the dollar amount 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 | ||||
Rent on factory equipment | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||
Insurance on factory building | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Raw materials | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Utility costs for factory | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Supplies for general office | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Wages for assembly line workers | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Depreciation on office equipment | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Miscellaneous materials | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Factory managers salary | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Property taxes on factory building | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Advertising for helmets | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Sales commissions | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Depreciation on factory building | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
| $enter a total amount | $enter a total amount | $enter a total amount |
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