Question

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

Crane 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). Crane’s monthly manufacturing cost and other expense data are as follows.

Rent on factory equipment		$11,600
Insurance on factory building		1,600
Raw materials (plastics, polystyrene, etc.)		84,000
Utility costs for factory		900
Supplies for general office		300
Wages for assembly line workers		62,900
Depreciation on office equipment		900
Miscellaneous materials (glue, thread, etc.)		1,400
Factory manager’s salary		6,200
Property taxes on factory building		500
Advertising for helmets		14,500
Sales commissions		10,700
Depreciation on factory building		1,700

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 Items	Direct Materials	Direct Labor	Manufacturing Overhead	Period Costs
Rent on factory equipment			11,600
Insurance on factory building			1,600
Raw materials (plastics, polystyrene, etc.)	84,000
Utility costs for factory			900
Supplies for general office				300
Wages for assembly line workers		62,900
Depreciation on office equipment				900
Miscellaneous materials (glue, thread, etc.)			1,400
Factory manager’s salary			6,200
Property taxes on factory building			500
Advertising for helmets				14,500
Sales commissions				10,700
Depreciation on factory building			1,700
Total	$84,000	$62,900	$23,900	$26,400

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