Question

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 $12,100 2,500 80,300 1,000 300 63,700 800 1,300 6,400 500 14,400 10,900 1,600 Part 1 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.

Answer 1

Answer:
		Product Costs
	Direct Materials	Direct Labor	Manufacturing Overhead	Period Costs
Rent on factory equipment			$ 12,100
Insurance on factory building			$ 2,500
Raw materials (plastics, polystyrene, etc)	$ 80,300
Utility costs for factory			$ 1,000
Supplies for general office				$ 300
Wages for assembly line workers		$ 63,700
Depreciation on office equipment				$ 800
Miscellaneous materials (glue, thread, etc.)			$ 1,300
Factory manager’s salary			$ 6,400
Property taxes on factory building			$ 500
Advertising for helmets				$ 14,400
Sales commissions				$ 10,900
Depreciation on factory building			$ 1,600
Total	$ 80,300	$ 63,700	$ 25,400	$ 26,400