Flounder Company, a manufacturer of audio systems, started its production in October 2022. For the preceding 3 years, Flounderhad been a retailer of audio systems. After a thorough survey of audio system markets, Flounder 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 $5,630 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $2,880. Factory janitorial costs are $2,180 monthly. Advertising costs for the audio system will be $8,670 per month. The factory building depreciation expense is $6,480 per year. Property taxes on the factory building will be $9,240 per year.

(a)

Assuming that Flounder manufactures, on average, 1,600 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		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Wages for workers		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Rent on equipment		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Indirect materials		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Factory supervisors salary		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Janitorial costs		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Advertising		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
Property taxes 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		$enter a total amount