Question
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohnos monthly manufacturing cost and other expense data are as follows.
Rent on factory equipment | $11,600 | |
---|---|---|
Insurance on factory building | 2,600 | |
Raw materials (plastics, polystyrene, etc.) | 83,900 | |
Utility costs for factory | 1,000 | |
Supplies for general office | 300 | |
Wages for assembly line workers | 58,200 | |
Depreciation on office equipment | 900 | |
Miscellaneous materials (glue, thread, etc.) | 1,300 | |
Factory managers salary | 5,900 | |
Property taxes on factory building | 500 | |
Advertising for helmets | 14,700 | |
Sales commissions | 10,200 | |
Depreciation on factory building | 1,600 |
Enter each cost item on your answer sheet, placing the dollar amount 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 | ||||
Rent on factory equipment | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||
Insurance on factory building | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Raw materials | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Utility costs for factory | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Supplies for general office | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Wages for assembly line workers | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Depreciation on office equipment | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Miscellaneous materials | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Factory managers salary | 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 | ||||
Advertising for helmets | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Sales commissions | 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 | ||||
$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 |
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