Question

Problem 19-01A a-b (Part Level Submission) (Video) Concord Company specializes in manufacturing a unique model of...

Problem 19-01A a-b (Part Level Submission) (Video)

Concord 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). Concord’s monthly manufacturing cost and other expense data are as follows.
Rent on factory equipment $11,100
Insurance on factory building 1,900
Raw materials (plastics, polystyrene, etc.) 78,300
Utility costs for factory 900
Supplies for general office 300
Wages for assembly line workers 67,100
Depreciation on office equipment 900
Miscellaneous materials (glue, thread, etc.) 1,400
Factory manager’s salary 5,800
Property taxes on factory building 400
Advertising for helmets 14,500
Sales commissions 10,800
Depreciation on factory building 1,700

(a)

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
$ $ $ $
0 0
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Answer #1
Product Costs
Cost item Direct Materials Direct Labour Manufacturing Overhead Period cost
Rent on factory equipment 11,100
Insurance on factory building 1,900
Raw materials 78,300
Utility costs for factory 900
Supplies for general Office 300
Wages for assembly line workers 67,100
Depreciation on Office Equipment 900
Miscellaneous Materials 1,400
Factory Manager's Salary 5,800
Property taxes on factory building 400
Advertising for helmets 14,500
Sales commissions 10,800
Depreciation on factory building 1,700
Total 78,300 67,100 23,200 26,500

Production Cost

Particulars Amount($)
Direct Materials 78,300
Direct Labour 67,100
Manufacturing Overhead 23,200
Total Production Cost 1,68,600

Production Cost per Helmet=$1,68,600/10,000=$16.86

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