The Business Situation Concrete Helmet Company is a newly formed company that manutachures 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 10.500.00 Advertising for helmet............... ... $11,000 11 000 00 Cash January 1... Depreciaion on factory building............... $1.500 1,500.00 Depreciation on office equipment........ se00 800.00 Insurance on factory building.......................$1200 1.200,00 Miscellaneous expenses-factory.................. 5500 500.00 Office supplies expense... . . .$300 300.00 Professional fees...... ...SCOO 800.00 Property taxes on factory building..................$400 400.00 Raw Materials used in production.... .$60 000 60 000.00 Renton production equipment...................... 55.000 5.000.00 Research & Development............................$10,000 10.000.00 Sales commissions (10% of sales)............ . $32,000 32.000.00 Utility costs-factory................................. $900 900.00 Wages - Factory direct labor........................$87.500 87.500.00 Work in process. January 1............................. $0 Work in process, January 31.................... Raw materials inventory, January 1...............$0 Raw materials inventory, January 31.... ...$12.000 12 000.00 Raw materials purchases $72.000 72.000.00 Finished goods inventory, January 1............. 50 10.000 8.000 540 Unit sel price 10.000 20% of next month's sales Number of halmols 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 1 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 as necessary if cash balance alls below the $20.000 minimum) each classification Assume Misc. e pensatory and cobory wreed costs Instructions Using the data presented above, complete the following 10 parts using this ce workbook 1. C h e costs as the produto periodowe using the five-column w ie Excel Workbook for part Free down load chef 2. C ythe coasther variable or sed costs are there are no mundo. E r the doll amount of each cost in the appropriate column and to 3. Prepare a schedule of cost of good manufactured the month of January, Dont forget the proper heading 4. Determine the cost of producing a helmet production cost per un 5. In the type of coloring that concrete Home Company is probably using this time EXPLAIN & Underwater i n Home Company reader o g system Explain 7. Comprehensivariables per home & Compute the unit i on margin AND the con il margin to Calcu the break even pointinas dos AND the brake pontinuts 10. Prepare the following budget for the month of January b) Production D ia Seng & Answers PROJECT CHECK FIGURES: Foto 3222.400 Total dos 565.400 Coafor God Ma d 157000 Totalcash disbursement 214.00 Mer inom 350
