Hello,
Please help me with part 10, below is all information I have so far and lastly will be part 10, and thank you in advance.
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. A A 10,500.00 11,000.00 A A A A A A A A The information provided to each candidate is as follows: Cost Items and Account Balances Administrative salaries. .....$10,500 Advertising for helmets... ...$11,000 Cash, January 1........................................$0 Depreciation on factory building................ $1,500 Depreciation on office equipment.............. .$800 Insurance on factory building................. $1,200 Miscellaneous expenses - factory.............. ..$500 Office supplies expense.............................. $300 Professional fees..................................... ..$800 Property taxes on factory building............... .$400 Raw Materials used in production................. $60,000 Rent on production equipment.................... .$5,000 Research & Development. ............... $10,000 Sales commissions (10% of sales)..... .........$32,000 Utility costs - factory... ........... $900 Wages - Factory direct labor..................... $87,500 Work in process, January 1..... Work in process, January 31. $0 Raw materials inventory, January 1........... Raw materials inventory, January 31.......... $12,000 Raw materials purchases............. $72,000 Finished goods inventory, January 1.............$0 1,500.00 800.00 1,200.00 500.00 300.00 800.00 400.00 60,000.00 5,000.00 10,000.00 32,000.00 900.00 87,500.00 A A A A A A A A "Y O . ....... A $0 A 12,000.00 72,000.00 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 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: Opening Stock Add Purchases Total Cost of Materials Available for Use Less Closing Stock of Materials Direct Materials Used $ $ $ 72,000 72,000 (12,000) $ 60,000 + Direct labor: 1.500 + Manufacturing overhead: Depreciation on factory building Insurance of factory building Misc Expenses-Factory property taxes on factory building rent on production equipment utility cost-factory Total manufacturing overhead Total manufacturing costs incurred during the period Total manufacturing costs in Work-in-process Less = Cost of Goods Manufactured 1.200 500 400 5,000 900 9,500 $ $ 157,000 157,000 157,000 Part 4 - Determine the cost of producing a helmet by dividing the cost of production and the unit produced, the cost of prudcing a helmet is 22.24 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. Part 7 - Compute the unit variable cost for a helmet. variable cost per unit= 17.95 Part 8 - Compute the unit contribution margin AND the contribution margin ratio. The unit Contrinution margin per unit is 22.05 and the contribution margin ratio is 55.13% Part 9 - Calculate the break-even point in sales dollars AND the break-even point in units ven point in sales is $77,840 and the Break even point in units is $1946 Part 10 (a through d) (a) (c) Sales budget Direct Materials Budget Total Sales Total kilograms needed for production Total materials required (b) Armstrong Helmet Company Production Budget For the month ended December 31, 2013 Total cost of direct materials purchases Total Required units (d) Direct Labor Budget Required production units P 1 0,000 Total direct labor cost Part 10 (e) (e) Selling & Administrative Budget Variable Expenses: Fixed Expenses: Total Fixed Expenses: Total Selling & Administrative Expenses: Part 10 (f-g) (1) Armstrong Helmet Company Cash Budget For the Month ending January 31,2020 Beginning cash balance Add: Receipts Armstrong Helmet Company Budgeted Income Statement For the month ending January 31,2020 sales cost of goods sold Gross Profit selling and admin expenses income for operations Income Tax Expense Net Income $ Total available cash 129,000 Total Disbursements Excess (deficiency) of available cash over disbursements Financing (if any): Ending cash balance 20,000
