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Pina Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to
Pina 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). Pina's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $13,000 Insurance on factory building 1,690 Raw materials used (plastics, polystyrene, etc.) 84,800 Utility costs for factory 970 Supplies for general office 310 Wages for assembly line workers 65,700 Depreciation on office equipment 810 Miscellaneous materials (glue, thread, etc.) 1,290 6,500 Factory manager's salary Property taxes on factory building Advertising for helmets 430 15,100 Sales commissions 11,020 Depreciation on factory building 1,620 Prepare an answer sheet with the following column headings. 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 Direct Materials Direct Labor Manufacturing Overhead Period Costs Cost Item Rent on factory equipment Insurance on factory building Raw materials Utility costs for factory Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 15.25.) Supplies for general office Production cost per helmet Wages for assembly line workers Depreciation on office equipment Miscellaneous materials Factory manager's salary Property taxes on factory building Advertising for helmets Sales commissions Depreciation on factory building
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