Question: The question is: P1-1A Classify manufacturing costs into different categories and compute the unit cost. (LO 2), AP Ohno Company specializes in manufacturing a unique
The question is:


P1-1A Classify manufacturing costs into different categories and compute the unit cost. (LO 2), AP 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 $11,000 Insurance on factory building 1,500 Raw materials (plastics, polystyrene, etc.) 75,000 Utility costs for factory 900 Supplies for general office 300 Wages for assembly line workers 58,000 Depreciation on office equipment 800 Miscellaneous materials (glue, thread, etc.) 1,100 Factory manager's salary 5,700 Property taxes on factory building 400 Advertising for helmets 14,000 Sales commission 10,000 Depreciation on factory building 1,500 Margin check figures provide key numbers to confirm that you are on the right track. Instructions (a) Prepare an answer sheet with the following column headings. Product Costs Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs 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. DM $75,000 DL $58,000 MO $22,100 PC $25,100 (b) Compute the cost to produce one helmet.P1-4A Prepare a cost of goods manufactured schedule, a partial income statement, and a partial balance sheet. (LO 3), AP The following data were taken from the records of Clarkson Company for the scal year ended June 30, 2017. Raw Materials Factory Insurance 8 4 ,600 Inventory 7!1!16 $ 48, 000 Factory Machinery Raw Materials Depreciation 16,000 Finished Goods Ofce Utilities Expense 8,650 Finished Goods Sales Discounts 4,200 Inventory 6130!]? 75,900 Plant Manager's Salary 58,000 Work in Process Factory Property Taxes 9,600 Inventory 7/1f16 , . Factory Repairs Work in Process 1' =W Materials Purchases 96,400 139,250 24,460 I 27,000 Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) (a) CGM $3 86,910 0?) Prepare an income statement through gross prot. (b) Gross prot $122,790 (0) Prepare the current assets section of the balance sheet at June 30, 2017. (0) Current assets $193,100
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
