(Can you please let me know which image is not visible, so that I may zoom in and make it more visible, thank you)
Hello,
Can you please help me with part 3 and 4 ( located on last two pictures)
I wanted to include some information first and the first picture is the business information and second is the business instructions and third I have the part 1 and 2 information already completed. I hope I organized this well enough, thank you in advance.
BUSINESS INFORMATION
BUSINESS INSTRUCTIONS.
PART 1 AND 2 INFORMATION FILLED
PART 3-6 THAT NEED HELP WITH PLEASE.
A A A A A A A A The Business Situation Concrete Helmet Company is a newly formed company that manufactures bicycle helmets. The company began operations January 1, 2020. Its accountant quit the second week of operations, and the company is searching for a replacement. The company has decided to test the knowledge and ability of all candidates interviewing for the position. Each candidate will be provided with the information below and then asked to prepare a series of reports, schedules, and budgets based on the information. The information provided to each candidate is as follows: Cost Items and Account Balances Administrative salaries. .....$10,500 10,500.00 Advertising for helmets... ...$11,000 11,000.00 Cash, January 1........................................$0 Depreciation on factory building................ $1,500 1,500.00 Depreciation on office equipment.............. .$800 800.00 Insurance on factory building................. $1,200 1,200.00 Miscellaneous expenses - factory.............. ..$500 500.00 Office supplies expense.............................. $300 300.00 Professional fees..................................... ..$800 800.00 Property taxes on factory building............... .$400 400.00 Raw Materials used in production................. $60,000 60,000.00 Rent on production equipment.................... .$5,000 5,000.00 Research & Development. ............... $10,000 10,000.00 Sales commissions (10% of sales)..... .........$32,000 32,000.00 Utility costs - factory... ........... $900 900.00 Wages - Factory direct labor..................... $87,500 87,500.00 Work in process, January 1..... Work in process, January 31. $0 Raw materials inventory, January 1........... Raw materials inventory, January 31.......... $12,000 12,000.00 Raw materials purchases............. $72,000 72,000.00 Finished goods inventory, January 1.............$0 A A A A A A A A A A "Y O . ....... A $0 A A A Production and Sales Data Number of helmets produced Expected sales in units for January Expected sales in units for February Desired ending inventory Direct materials needed per 1 finished unit Direct materials cost Desired direct materials inventory Direct labor hours per unit Direct labor hourly rate 10,000 8,000 $40 Unit sell price 10,000 20% of next month's sales 1 Kilogram $6 per kilogram 20% of next months' production 0.35 hour $25 per hour Cash Flow Data Cash collection from customers: 70% in month of sale and 30% the following month. Cash payments to suppliers: 75% in month of purchase and 25% the following month. Income tax rate: 35% Manufacturing overhead and selling and administrative costs are paid as incurred. Desired ending cash balance: 20,000 (financing is necessary if cash balance falls below the $20,000 minimum). Instructions Using the data presented above, complete the following 10 parts using this Excel workbook. 1. Classify the costs as either product costs or period costs using the five-column table in the Excel workbook for part 1. Enter the dollar amount of each cost in the appropriate column and total each classification. 2. Classify the costs as either variable or fixed costs. Assume there are no mixed costs. Enter the dollar amount of each cost in the appropriate column and total each classification. Assume Misc. expense-factory and Utility costs-factory are fixed costs. 3. Prepare a schedule of cost of goods manufactured for the month of January. Don't forget the proper heading. 4. Determine the cost of producing a helmet (production cost per unit). 5. Identify the type of cost accounting system that Concrete Helmet Company is probably using at this time. EXPLAIN. 6. Under what circumstances might Concrete Helmet Company use a different cost accounting system? Explain. 7. Compute the unit variable cost per helmet. 8. Compute the unit contribution margin AND the contribution margin ratio (%). 9. Calculate the break-even point in sales dollars AND the break-even point in units. 10. Prepare the following budgets for the month of January. a) Sales b) Production c) Direct materials d) Direct labor e) Selling & Administrative expenses f) Cash g) Budgeted income statement PROJECT CHECK FIGURES: Total costs = $222,400 Total Period costs = $65,400 Cost of Goods Manufactured = $157,000 Total cash disbursements = $214,100 Net Income = $83,850 Part-1 Direct Material Production Costs Direct Manufacturing Labor Ovehead Period Cost $ 10,500 $ 11,000 $ 1,500 800 $ 1.200 500 Item Administartive salaries Advertising for helmets Depreciation on Factory Building Depreciation on Office Equipment Insurance on Factory Building Miscellanious expenses -factory office supplies Professional fees Property taxes on factory buiding Raw Material used in production Rent on Production equipment Research and Development Sales Commission Utility Cost-Factory Wages Factory Direct labor Total 300 800 400 $ 60,000 5,000 $ $ 10,000 32,000 900 $ 60,000 $ 87,500 87,500 $ 9,500 $ 65,400 $ Part-2 Item Variable Cost Fixed Cost Total Cost Administartive salaries $ 10,500 $ 10,500 Advertising for helmets $ 11,000 $ 11,000 Depreciation on Factory Building $ 1,500 $ 1,500 Depreciation on Office Equipment $ 800 $ 800 Insurance on Factory Building $ 1.200 1.200 Miscellanious expenses -factory 500 $ 500 office supplies 300 $ 300 Professional fees 800 800 Property taxes on factory buiding 400 $ 400 Raw Material used in production | $ 60,000 60,000 Rent on Production equipment $ 5,000 5,000 Research and Development $ 10,000 $ 10,000 Sales Commission | $ 32,000 32,000 Utility Cost-Factory $ 900 $ 900 Wages Factory Direct labor $ 87,500 $ 87,500 Total $ 1,79,500 $ 42,900 $ 2.22,400 $ Part 3 - Prepare a schedule of cost of goods manufactured for the month of January, 2020. (Don't forget the heading) Cost of Goods Manufactured Schedule Work in process inventory, Direct materials: Total Cost of Materials Available for Use Direct Materials Used + Direct labor: + Manufacturing overhead: Total manufacturing overhead Total manufacturing costs incurred during the period Total manufacturing costs in Work-in-process Less = Cost of Goods Manufactured Part 4 - Determine the cost of producing a helmet Part 5 - Identify the type of cost accounting system that Concrete Helmet Company is probably using at this time. Explain. Part 6 - Under what circumstances migt Concrete use a different cost accounting system? Explain
