Question

Sheffield 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). Sheffield’s monthly manufacturing cost and other expense data are as follows.

Problem 14-01A a-b (Video) (Part Level Submission) Sheffield 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). Sheffield's monthly manufacturing cost and other expense data are as follows Rent on factory equipment Insurance on factory building Raw materials (plastics, polystyrene, etc.) Utility costs for factory Supplies for general office Wages for assembly line workers Depreciation on office equipment $11,200 1,700 84,900 900 400 58,300 800 1,200 5,800 500 14,400 10,100 1,700 Miscellaneous materials (glue, thread, etc.) Factory manager's salary Property taxes on factory building Advertising for helmets Sales commissions Depreciation on factory building

Answer 1

Product costs
Cost Item	Direct materials	Direct labor	Manufacturing overhead	Period cost
Rent on Factory equipment			$                                   11,200
Insurance on factory building			$                                     1,700
Raw materials	$                84,900
Utility costs for factory			$                                         900
Supplies for general office				$             400
Wages for assembly line workers		$       58,300
Depreciation on office equipment				$             800
Miscellaneous materials			$                                     1,200
Factory manager's salary			$                                     5,800
Property taxes on factory building			$                                         500
Advertising for helmets				$       14,400
Sales commissions				$       10,100
Depreciation on factory building			$                                     1,700
	$                84,900	$       58,300	$                                   23,000	$       25,700