Question

Problem 14-01A 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 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 Miscellaneous materials (glue, thread, etc.) Factory manager's salary Property taxes on factory building Advertising for helmets Sales commissions Depreciation on factory building $11,500 1,700 77,100 900 400 59,700 900 1,500 6,400 500 14,500 10,900 1,700 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. Direct Materials Product Costs Direct Labor Manufacturing Overhead Period Costs Cost Item 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

Answer 1

Product Costs Direct Materials Direct labor Manufacturing Overhead Period Cosst| 11.500 IS 1,700 S 77,100 900 $ 400 $ 59,700 Cost item 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 Miscellenious Materials Factory mangaer's salary Property taxes on factory building Adevertising for helmets Sales commissions Depreciation on factory building 900 S 1,500 6,400 500 $ $ 1,700 24,200 S 14,500 10,900 Total $ 77,100 $ 59,700 S 26,700

Production cost per helmet S 16.10 Production Cost Particulars Direct Materials Direct Labor Manufacturing Overhead Total Production Cost Amount () 77,100 $ 59,700 $ 24,200 s 161.000 Production Cost per Helmet = $161,000/10000 = $16.10