The first five questions has been answered
I just need number 6,7,8,9 and 10
HELMETCE Armstrong Helmet Company Developed by Dick Wasson, Southwestern College The Business Situation Armstrong Helmet Company manufactures a unique model of bicycle helmet. The company began operations December 1, 2013. Its accountant quit the second week of operations, and the company is searching for a replacement. The com- pany has decided to test the knowledge and ability of all candidates interviewing for the position. Each candidate will be provided with the informmation below and then asked to prepare a series of reports, schedules, budgets, and recommenda- tions based on that information. The information provided to each candidate is as follows. Cost Items and Account Balances Administrative salaries Advertising for helmets Cash, December 1 Depreciation on factory building Depreciation on office equipment Insurance on factory buildinig Miscellaneous expenses-factory Office supplies expense Professional fees Property taxes on factory building Raw materials used Rent on production equipment Rescarch and development Sales commissions Utility costs-factory Wages-factory Work in process, December 1 Work in process, December 31 Raw materials inventory, December 1 Raw materials inventory, December 31 Raw material purchases Finisbed goods inventory, December 1 $15,500 11,000 1,500 800 1,500 1,000 300 500 400 70,000 6,000 10.000 40,000 900 70,000 -0- -0- -0- 70,000 -0- CA-27 RONG ARMSTR COMPANT ARMSTRONG HELMET COMPANY CA-28 case 7 Cases for Management Decision-Making Production and Sales Data Number of helmets produced Expected sales in units for December ($40 unit sales price) Expected sales in units for January Desired ending inventory Direct materials per finished unit Direct materials cost Direct labor hours per unit Direct labor hourly rate 10,000 8,000 10.000 20% of next month's sales 1 kilogram $7 per kilogram 35 $20 Cash Flow Data Cash collections from customers: 75% in month of sale and 25% the following month. Cash payments to suppliers: 75% in month of purchase and 25% the following month. Income tax rate: 45%. Cost of proposed production equipment: $720.000. Manufacturing overhead and selling and administrative costs are paid as incurred. Desired ending cash balance: $30,000, Instructions Using the data presented above (including data on page CA-27), do the following. 1. Classify the costs as either product costs or period costs using a five-colume table as shown below. Enter the dollar amount of each cost in the appropriate column and total cach classification. Product Costs Direct Labor Direct Manufacturing Overhead Item Materials Period Costs 2. Classify the costs as cither variable or fixed costs. Assume there are no mined costs Enter the dollar amount of cach cost in the appropriate column and total each classifi- cation. Use the format shown below. Assume that Utility costs-factory are a fised cost Variable Costs Fixed Total Item Costs Costs 3. Prepare a schedule of cost of goods manufactured for the month of December 2013 4. Determine the cost of producing a helmet. 5. Identify the type of cost accounting system that Armstrong Helmet Company is prob- ably using at this time. Eaplain. 6. Under what circumstances might Amstrong use a different cost accounting stem? 7. Compute the unit variable cost for a helmet. 8. Compute the unit contribution margin and the contrition margin ratio 9. Calculate the break-even point in units and in sales dollars. 10. Prepare the following budgets for the month of December 2013. (a) Sales. (b) Production. (c) Direct materials. (d) Direct labor (e) Selling and administrative expenses (O Cash. O Budgeted income statement