This Website Has Been Moved to a New Link


Loading

P19-1A Bjerg Company specializes in manufacturing a unique model of bicycle helmet. The

Price: $2.50


P19-1A Bjerg 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). Bjerg’s monthly manufacturing
cost and other expense data are as follows.


Rent on factory equipment   7,000
Insurance on factory building   1,500
Raw materials (plastics, polystyrene, etc.)   75,000
Utility costs for factory   900
Supplies for general offi ce   300
Wages for assembly line workers   43,000
Depreciation on offi ce equipment   800
Miscellaneous materials (glue, thread, etc.)   1,100
Factory managerÕs salary   5,700
Property taxes on factory building   400
Advertising for helmets   14,000
Sales commissions   7,000
Depreciation on factory building   1,500

Instructions

(a) Prepare an answer sheet with the following column headings.
Product Costs
Cost Direct Direct Manufacturing Period
Item Materials Labor Overhead 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.

(b) Compute the cost to produce one helmet

No comments:

Post a Comment