Question

Pictures are for part A. Part b asks to compute the cost of producing one helmet

Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is wel ccepted by 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 $12,100 Insurance on factory building 2,500 Raw materials (plastics, polystyrene, etc.) 77,700 Utility costs for factory 1,000 Supplies for general office 400 Wages for assembly line workers 66,400 Depreciation on office equipment 900 Miscellaneous materials (glue, thread, etc.) 1,500 Factory manager's salary 6,500 Property taxes on factory building 400 Advertising for helmets 14,700 Sales commissions 10,400 Depreciation on factory building 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 Product Costs Direct Direct Manufacturing Period Cost Item Materials Labor Overhead Costs Rent on factory equipment 5 Insurance on factory building Raw materials Utility costs for factory Supplies for general office Wages for assembly ine workers

Answer 1

Cost Item				direct	direct	manufacturing	period
				materials	labor	overhead	costs
Rent on factory Equipment						12,100
insurance on factory building						2,500
Raw materials				77,700
utility costs for factory						1000
supplies for general office							400
wages for assembly line workers					66,400
Depreciation on office equipment							900
miscellanoeus materials						1,500
factory manager's salary						6,500
property taxes on factory building						400
Advertising for helmets							14,700
Sales commissions							10,400
Depreciation on factory building						1,700
				77700	66400	25,700	26400
b)	Total product costs
	Direct materials				77700
	direct labor				66400
	manufacturing overhead				25,700
	total production cost				169800
	production cost per helment = 169800/10000
				16.98