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I need help with Part 3 The Business Situation Concrete Helmet Company is a newly formed company that manufactures bicycle helmets. The company began operations
I need help with Part 3
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........ $ 10,500.00 Advertising for helmets........ $ 11,000.00 Cash, January 1................. $ Depreciation on factory buildi$ 1,500.00 Depreciation on office equip $ 800.00 Insurance on factory building $ 1,200.00 Miscellaneous expenses - fa $ 500.00 Office supplies expense....... $ 300.00 Professional fees............... $ 800.00 Property taxes on factory bui $ 400.00 Raw Materials used in produ, $ 60,000.00 Rent on production equipmer $ 5,000.00 Research & Development.... $ 10,000.00 Sales commissions (10% of: $ 32,000.00 Utility costs - factory........... $ 900.00 Wages - Factory direct labor $ 87,500.00 Work in process, January 1.. $ Work in process, January 31 $ Raw materials inventory, Jan $ Raw materials inventory, Jan $ 12,000.00 Raw materials purchases.....$ 72,000.00 Finished goods inventory, Ja $ Production and Sales Data Number of helmets produced 10,000 Expected sales in units for JE 8,000 $40 Unit sell price Expected sales in units for FE 10,000 Desired ending inventory 20% of next month's sales Direct materials needed per 1 Kilogram Direct materials cost $6 per kilogram Desired direct materials inve 20% of next months' production Direct labor hours per unit Direct labor hourly rate $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). 0.35 hour 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 ManufacturedStep by Step Solution
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