Question

rap Tex Copy Paste Blu Format Merge & Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates Activate Office to Create and Edit Buy Office or sign in to activate Office if you've already bought it. TextBox 1 x f 1 1A- Question: Ohno Company specializes in manufacturing a unique model of bicycle helmet. 3The model is well accepted by consumers, and the company has enough orders to keep the factory 4 production at 10,000 helmets per month (80% of its full capacity). S Ohno's monthly manufacturing cost and other expense data are as follows Clossify manufacturing costs into different categories and compute the unit cost 10 Rent on factory equipment 11 Insurance on factory building 12 Raw materials (plastics, polystyrene, etc.) 13 Utility costs for factory 14 Suppliles for general office 15 Wages for assembly line workers 16 Depreciation on office equipment 17 Miscellaneous materials (glue, thread, etc.) 18 Factory manager's salary 19 Property taxes on factory building 20 Advertising for helmets 21 Sales commissions 22 Deprediation on factory building 23 24 uctions 25 26 epare an answer sheet with the following column headings 27 $11,000 75,000 900 58,000 800 1,100 5,700 14,000 10,000 ,500 Product Costs Cost Item Direct Materials Direct Labor Manufacturing Perlod Costs Overhead 29 30 mpute the cost to produce one helmet. 31 34 CH14.P1.A.Questions+ Ready 19

Answer 1

Ans- Preparing a statement classifying and calculating cost of production per unit:-

Cost Item			Product Costs
	Direct Materials	Direct Labor	Manufacturing Overhead	Period Costs
Rent on factory equipment			$11,000
Insurance on factory building			$1,500
Raw materials	$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			$1,100
Factory managers salary			$5,700
Property taxes on factory building			$400
Advertising for helmets				$14,000
Sales Commission				$10,000
Depreciation on factory building			$1,500
Totals	$75,000	$58,000	$22,100	$25,100

Total Cost of Production ($75,000+$58,000+$22,100) (A)	$155,100
Units Produced (B)	10,000
Cost of Production Per Unit (A/B)	$15.51

Therefore, Cost of Production per unit is $15.51

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