Using the information above, answer the following:
Cost Items and Account Balances Administrative salaries Advertising for helmets. Cash, January 1.... Depreciation on factory building. Depreciation on office equipment. Insurance on factory building... Miscellaneous expenses - factory. Office supplies expense. Professional fees... Property taxes on factory building. Raw Materials used in production Rent on production equipment. Research & Development.. Sales commissions (10% of sales). Utility costs - factory Wages - Factory direct labor.. Work in process, January 1 Work in process, January 31. Raw materials inventory, January 1. Raw materials inventory, January 31. Raw materials purchases. Finished goods inventory, January 1. $10,500.00 $11,000.00 S $ 1,500.00 $ 800.00 $ 1,200.00 S 500.00 $ 300.00 $ 800.00 $ 400.00 $60,000.00 $ 5,000.00 $10,000.00 $32,000.00 S 900.00 $87,500.00 S S S $12,000.00 $72,000.00 S Production and Sales Data Number of helmets 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 10,000 8,000 $40 Unit sell price 10,000 20% of next month's sales 1 Kilogram $6 per 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 is necessary if cash balance falls below the $20,000 minimum). Part 4 - Determine the cost of producing a helmet Part 5 - Identify the type of cost accounting system that Concrete Helmet Company is probably using at this time. Explain. Part 6 - Under what circumstances migt Concrete use a different cost accounting system? Explain. Cost Items and Account Balances Administrative salaries Advertising for helmets. Cash, January 1.... Depreciation on factory building. Depreciation on office equipment. Insurance on factory building... Miscellaneous expenses - factory. Office supplies expense. Professional fees... Property taxes on factory building. Raw Materials used in production Rent on production equipment. Research & Development.. Sales commissions (10% of sales). Utility costs - factory Wages - Factory direct labor.. Work in process, January 1 Work in process, January 31. Raw materials inventory, January 1. Raw materials inventory, January 31. Raw materials purchases. Finished goods inventory, January 1. $10,500.00 $11,000.00 S $ 1,500.00 $ 800.00 $ 1,200.00 S 500.00 $ 300.00 $ 800.00 $ 400.00 $60,000.00 $ 5,000.00 $10,000.00 $32,000.00 S 900.00 $87,500.00 S S S $12,000.00 $72,000.00 S Production and Sales Data Number of helmets 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 10,000 8,000 $40 Unit sell price 10,000 20% of next month's sales 1 Kilogram $6 per 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 is necessary if cash balance falls below the $20,000 minimum). Part 4 - Determine the cost of producing a helmet Part 5 - Identify the type of cost accounting system that Concrete Helmet Company is probably using at this time. Explain. Part 6 - Under what circumstances migt Concrete use a different cost accounting system? Explain
