Fabila Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by
Question:
Fabila 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). Fabila??s monthly manufacturing cost and other expense data are as follows.Rent on factory equipment .......... $ 7,000Insurance on factory building ......... 1,500Raw materials (plastics, polystyrene, etc.) ...... 75,000Utility costs for factory ............. 900Supplies for general office ........... 300Wages for assembly line workers ....... 43,000Depreciation on office equipment ........ 800Miscellaneous materials (glue, thread, etc.) .... 1,100Factory manager??s salary ............ 5,700Property taxes on factory building ......... 400Advertising for helmets ........... 14,000Sales commissions .............. 7,000Depreciation on factory building ....... 1,500Instructions(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.(b) Compute the cost to produce onehelmet.
Step by Step Answer:
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso