Larkspur Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Larkspur decided to turn its retail store into an audio equipment factory. Production began October 1, 2022. Direct materials costs for an audio system total $75 per unit. Workers on the production lines are paid $14 per hour. An audio system takes 5 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,110 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,730. Factory janitorial costs are $1,550 monthly. Advertising costs for the audio system will be $9,290 per month. The factory building depreciation is $6,600 per year. Property taxes on the factory building will be $8,760 per year.

(a)

Assuming that Larkspur manufactures, on average, 1,500 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
Direct 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 for this column		$enter a total amount for this column		$enter a total amount for this column		$enter a total amount for this column