Question

Problem 10-1 (Part Level Submission) Cheyenne Company specializes in manufacturing a unique model of bicycle helmet....

Problem 10-1 (Part Level Submission)

Cheyenne 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). Cheyenne’s monthly manufacturing cost and other expense data are as follows.
Rent on factory equipment $11,500
Insurance on factory building 2,490
Raw materials used (plastics, polystyrene, etc.) 77,400
Utility costs for factory 910
Supplies for general office 380
Wages for assembly line workers 62,300
Depreciation on office equipment 890
Miscellaneous materials (glue, thread, etc.) 1,410
Factory manager’s salary 6,100
Property taxes on factory building 420
Advertising for helmets 14,400
Sales commissions 10,600
Depreciation on factory building 1,670

Collapse question part

(a)

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


Cost Item

Direct
Materials

Direct
Labor

Manufacturing
Overhead

Period
Costs

Rent on factory equipment $

$

$

$

Insurance on factory building

Raw materials

Utility costs for factory

Supplies for general office

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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Answer #1
Product Costs
Direct Materials Direct Labor Manufacturing Overhead Period Costs
Rent on factory equipment 11500
Insurance on factory building 2490
Raw materials 77400
Utility costs for factory 910
Supplies for general office 380
Wages for assembly line workers 62300
Depreciation on office equipment 890
Miscellaneous materials 1410
Factory manager’s salary 6100
Property taxes on factory building 420
Advertising for helmets 14400
Sales commissions 10600
Depreciation on factory building 1670
77400 62300 24500 26270
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