Question

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 $11.800 2,100 Insurance on factory building 84,100 Raw materials (plastics.polystyrene, etc.) Utility costs for factory Supplies for general office 1,000 Wages for assembly line workers Depreciation on office equipment Miscellaneous materials (glue, thread, etc.) Factory manager's salary 400 59,300 900 1,300 6.300 400 14,600 10,700 1,700 Property taxes on factory building Advertising for helmets Sales commissions Depreciation on factory building 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 Materials Direct Labor Manufacturing Overhead Period Costs Cost Item 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

Answer 1

Product Costs
Cost Item	Direct Materials	Direct Labor	Manufacturing Overhead	Period Cost
Rent on factory equipment			11,800
Insurance of factory building			2,100
Raw materials	84,100
Utility cost for factory			1,000
Supplies for general office				400
Wages for assembly line workers		59,300
Depreciation on office equipment				900
Miscellaneous materials			1,300
Factory manager's salary			6,300
Property taxes on factory building			400
Advertising for helmets				14,600
Sales commissions				10,700
Depreciation on factory building			1,700
Total	$84,100	$59,300	$24,600	$26,600

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