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Problems: Set A Classify manufacturing chi different categories and compare the unit cost P1.1A (LO2), AP Ohno Company specializes in manufacturing a unique model of

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Problems: Set A Classify manufacturing chi different categories and compare the unit cost P1.1A (LO2), AP 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). Ohno's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,000 Insurance on factory building 1,500 Raw materials (plastics, polystyrene, etc.) 75,000 Utility costs for factory 900 Supplies for general office 300 Wages for assembly line workers 58,000 Depreciation on office equipment 800 Miscellaneous materials (glue, thread, etc.) Factory manager's salary 1.100 Property taxes on factory building 5,700 Advertising for helmets 400 Sales commissions 14,000 Depreciation on factory building 10,000 1,500 Problems: Set Instructions a. Prepare an answer sheet with the following column headings. Product Costs Cost Direct Direct Manufacturing Period Item Materials Labor Overhead Costs Enter each cost item on your answer sheet, placing the dollar amount under the appropriate head- ings. Total the dollar amounts in each of the columns. b. Compute the cost to produce one helmet. a. DM $75,000 DL $58,000 MO $22,100 PC $25,100 Margin check figures provide key numbers to confirm that you are on the right track 1.38 CHAPTER 3 Managerial Accounting C Propre con el contenere hele, a priem 8650 534.000 4.300 FIALO2L The idowie das were taken from the records of Clarks Company for the bike med 20 2030 Raw Materials Factory Insurance ENCHI 14/19 $48.000 Factory Machinery Re Mall Deprecati Inventory 6300 19.00 Pastery Les Finished Goods Onice Lilities Expense I/19 6.000 Sales Revenue Fished Goods Sales Discounts loco 63020 75.900 Plant Manager's Salary Work in Proces Factory Property Times Imery 7/1/9 19.800 Factory Repairs Work in Process Raw Materials Purchases Investory 6/10/20 Direct Labor 199,250 Indirect Laher 34,460 Account Receivable 9.00 1.400 32.000 18.000 27.000 COM $386.900 Gross profit $112,70 Current ses $199.00 Instructions .. Peparta con el good manufactured schedule. (Asume all raw materials used were direct materiak h. Prepare an income statement theagh gross profit Prepare the current section of the balance sheet at June 30, 2020 Preparacord in which in SERI Excel 1.5A LO 3), AN Empire Company is a manufacturer of smart phones. Ils controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020, Empire Company Income Statement For the Month Ended October 31, 2020 $780,000 Sales revenue Les: Operating expenses Raw materials purchases Direct labor con Advertising expense Selling and administrative salaries Resten factory facilities Depreciation sales equipment Depreciation factory equipment Indirect labor cost Utilities expose $264.00 190,000 90,000 75.000 60.000 45.000 31,000 28.000 12,000 8.000 Netlo 800.000 $ 23,000) Prieto Detober 2000, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to revica the income atement and make neceway corrections Aher examining other manufacturing cost dat you lasted additional information as follows. 1. Innerhalces the beginning and end of October were October 1 October 31 $18.000 529,000 Work in process 20.000 14.000 Finished goods 50.000 2. Ouly 75% of the utilities expense and cos of the internet expense apply to factory operations. The maling mounts should be charged to selling and administrative activities Instructions Prepare a schedule of cost of goods manufactured for October 2030 Prepare income statement for October 2030

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