Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Concrete Helmet Case Workbook for students QuSearch Sheet Data Review View Share Comments AutoSave OFF A svo Home Insert Draw Page Layout Formulas Mv Arial
Concrete Helmet Case Workbook for students QuSearch Sheet Data Review View Share Comments AutoSave OFF A svo Home Insert Draw Page Layout Formulas Mv Arial 11 A A BI U D A H264 x fx = = Az av alle Wrap Text SE Merge & Center O General $ % Insert 2X Delete D P D Conditional Format Formatting as Table Paste od -20 Cell Styles Ideas Format Sort & Filter Sensitivity X Find & Select V G H I J K L M N O P Q R S T U V W X Concrete Helmet Company *Adapted from Armstrong Helmet Company Case developed by Dick Wasson, Southwestern College and revised as appropriate per course 4 **This project is worth 60 points. You must upload your assignment submission as an Excel file - no other formats will be accepted. An Excel workbook file is provided for you to complete this case project. You do not need to add or remove any rows or columns in the Excel file. 7 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 9 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. 10 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. 11 The information provided to each candidate is as follows: 12 Cost Items and Account Balances 13 Administrative salaries. ....$10,500 $ 10,500.00 14 Advertising for helmets.. .......................$11,000 $ 11,000.00 15 Cash, January 1. .................$0 16 Depreciation on factory building....................$1,500 $ 1,500.00 17 Depreciation on office equipment..................$800 $ 800.00 18 Insurance on factory building. ....................$1,200 $ 1,200.00 19 Miscellaneous expenses - factory.................$500 $ 500.00 20 Office supplies expense......... 21 Professional fees.......... ...............$800 $ 800.00 22 Property taxes on factory building... $ 400.00 23 Raw Materials used in production.... $ 60,000.00 24 Rent on production equipment..... 25 Research & Development....... 26 Sales commissions (10% of sales)... $ 32,000.00 27 Utility costs - factory........... ............$900 $ 900.00 28 Wages - Factory direct labor. .................. $87,500 $ 87,500.00 29 Work in process, January 1... 30 Work in process, January 31.......................$0 31 Raw materials inventory, January 1............... 32 Raw materials inventory, January 31..............$12,000 $ 12,000.00 33 Raw materials purchases............ 34 Finished goods inventory, January 1.............$0 A A A 36 Production and Sales Data 37 Number of helmets produced 38 Expected sales in units for January 39 Expected sales in units for February o Decirani andinn inventar Concrete HelmetCase Instructions 10,000 8,000 $40 Unit sell price 10,000 2007 nov month'e calce part 1 - 5pt part 2 - 5pt part 3 - 6pt parts 4-6 -6pt parts 7-9 - 10pt part 10 (a-d) - 6pt part 10 (e) - 3pt part 10 (-9) - 9pt + Ready 6 - - - + 100% AutoSave OFF svo Concrete Helmet Case Workbook for students QuSearch Sheet Home Insert Draw Page Layout Formulas Data Review View Comments Share [ 11 A A = = = Wrap Text EAY-O DO E Arial BIU fx General $ % 3 Insert 2X Delete E P Conditional Format Formatting as Table Paste A 3 Merge & Center od -20 Cell Styles Sort & Filter Ideas Format Find & Select Sensitivity X | H26 x N O P Q R S T U V W X ZAA G H I J K L M 37 Number of helmets produced 10,000 38 Expected sales in units for January 8,000 $40 Unit sell price 39 Expected sales in units for February 10,000 40 Desired ending inventory 20% of next month's sales 41 Direct materials needed per 1 finished unit 1 Kilogram 42 Direct materials cost $6 per kilogram 43 Desired direct materials inventory 20% of next months' production 44 Direct labor hours per unit 0.35 hour 45 Direct labor hourly rate $25 per hour 46 47 Cash Flow Data 48 Cash collection from customers: 70% in month of sale and 30% the following month. 49 Cash payments to suppliers: 75% in month of purchase and 25% the following month. 50 Income tax rate: 35% 51 Manufacturing overhead and selling and administrative costs are paid as incurred. 52 Desired ending cash balance: $ 20,000 (financing is necessary if cash balance falls below the $20,000 minimum). 54 Instructions 55 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 76 PROJECT CHECK FIGURES: Total costs = $222,400 Total Period costs = $65,400 Cost of Goods Manufactured = $157,000 Total cash disbursements = $214,100 81 Net Income = $83,850 80 Concrete HelmetCase Instructions part 1 - 5pt part 2 - 5pt part 3 - 6pt parts 4-6 -6pt parts 7-9 - 10pt part 10 (a-d) - 6pt part 10 (e) - 3pt part 10 (f-9) - 9pt 0 + - - Ready + 90% AutoSave OFF A svo Concrete Helmet Case Workbook for students QuSearch Sheet Home Insert Draw Page Layout Formulas Data Review View Comments 12 Share [ A = = = DO Wrap Text P2 E AY-O A A General $ % Arial B IU v fx 3 Insert 2X Delete A Conditional Format Formatting as Table E Cell Styles Paste Merge & Center 48.29 Sort & Filter Ideas Format Find & Select Sensitivity X | A13 x A B C D E F G H I J K L Part 4 - Determine the cost of producing a helmet 6 Part 5 - Identify the type of cost accounting system that Concrete Helmet Company is probably using at this time. Explain. 11 Part 6 - Under what circumstances migt Concrete use a different cost accounting system? Explain. Concrete HelmetCase Instructions part 1 - 5pt part 2 - 5pt part 3 - 6pt parts 4-6 -6pt parts 7-9 - 10pt part 10 (a-d) - 6pt part 10 (e) - 3pt + part 10 (f-9) - 9pt $ 0 Ready - - - + 100% AutoSave OFF A svo Concrete Helmet Case Workbook for students QuSearch Sheet Home Insert Draw Page Layout Formulas Data Review View Comments Share [ = = DO Wrap Text P = E EAY-O General $ % E Conditional Format Formatting as Table 3 Insert 2X Delete Paste 3 Merge & Center od -20 Cell Styles Sort & Filter Ideas Format Find & Select Sensitivity X Arial 12 A A BIU A | 417 x fx AB D 1 Part 7 - Compute the unit variable cost for a helmet. E F G H I J K L M N O P Q R S T U V W Part 8 - Compute the unit contribution margin AND the contribution margin ratio. Part 9 - Calculate the break-even point in sales dollars AND the break-even point in units Concrete HelmetCase Instructions part 1 - 5pt part 2 - 5pt part 3 - 6pt parts 4-6 -6pt parts 7-9 - 10pt part 10 (a-d) - 6pt part 10 (e) - 3pt + part 10 (-9) - 9pt $ 0 Ready - - - + 100% AutoSave OFF A svo Concrete Helmet Case Workbook for students QuSearch Sheet Home Insert Draw Page Layout Formulas Data Review View Comments Share 5 = = ab Wrap Text = E O Arial 12 AA BI U v Ev v A f DO SE General $ % 3 Insert EX Delete E Az Tv Zn PZD A Conditional Format Cell Formatting as Table Styles Paste Merge & Center -29 Sort & Filter Ideas Format Find & Select Sensitivity X H I J K L M N O P Q R S 1 Part 10 (a through d) (a) 1 (c) Sales budget Direct Materials Budget Total Sales Total kilograms needed for production Total materials required 11 (6) Armstrong Helmet Company Production Budget For the month ended December 31, 2013 Total cost of direct materials purchases Total Required units Direct Labor Budget Required production units Total required direct labor hours Total direct labor cost 41 Concrete HelmetCase Instructions part 1 - 5pt part 2 - 5pt part 3 - 6pt parts 4-6 -6pt parts 7-9 - 10pt part 10 (a-d) - 6pt part 10 (e) - 3pt + part 10 (-9) - 9pt $ 0 Ready - - - + 100% AutoSave OFF A svo Concrete Helmet Case Workbook for students QuSearch Sheet Home Insert Draw Page Layout Formulas Data Review View Comments Share 5 = = = Wrap Text E Az O DO SE Insert 2X Delete Arial 12 A A BI U DA fox General $ % PZD Conditional Format Cell Formatting as Table Styles Paste 3 Merge & Center od -20 Ideas Format Sort & Filter Sensitivity X Find & Select V | 119 x G H I J K L M N O P Q R S T U 1 Part 10 (e) (e) Selling & Administrative Budget Variable Expenses: Fixed Expenses: Total Fixed Expenses: Total Selling & Administrative Expenses: Concrete HelmetCase Instructions part 1 - 5pt part 2 - 5pt part 3 - 6pt parts 4-6 -6pt parts 7-9 - 10pt part 10 (a-d) - 6pt part 10 (e) - 3pt + part 10 (f-9) - 9pt 6 ] Ready - - + 100% AutoSave OFF A svo Concrete Helmet Case Workbook for students QuSearch Sheet Home Insert Draw Page Layout Formulas Data Review View Comments Share 5 Arial 12 = = = Wrap Text E A7 O AA A DO E General $ % , P Conditional Format Formatting as Table 2 insert 2X Delete Format Paste B I U E 3 Merge & Center .29 Cell Styles Sort & Filter Find & Select Ideas X Sensitivity A1 x fx Part 10 (f-g) L M N O P Q R 1 Part 10 (- Cash Budget Budgeted Income Statement Beginning cash balance Add: Receipts Gross Profit Total available cash Less: Disbursements Income Tax Expense Net Income Total Disbursements Excess (deficiency) of available cash over disbursements Financing (if any): Ending cash balance Concrete HelmetCase Instructions part 1 - 5pt part 2 - 5pt part 3 - 6pt parts 4-6 -6pt parts 7-9 - 10pt part 10 (a-d) - 6pt part 10 (e) - 3pt part 10 (-9) - 9pt + BO J - - Ready - + 100%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started