Question

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

Rent on factory equipment		$12,000
Insurance on factory building		1,650
Raw materials used (plastics, polystyrene, etc.)		84,900
Utility costs for factory		930
Supplies for general office		350
Wages for assembly-line workers		58,300
Depreciation on office equipment		840
Miscellaneous materials (glue, thread, etc.)		1,230
Factory manager’s salary		5,800
Property taxes on factory building		430
Advertising for helmets		14,400
Sales commissions		10,120
Depreciation on factory building		1,660

(a) Prepare an answer sheet with the following column headings.

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. (Round answer to 2 decimal places, e.g. 15.25.)

Production cost per helmet

$enter production cost per helmet rounded to 2 decimal places

2. Sheffield Corporation has the following cost records for June 2022.

Indirect factory labor		$5,200		Factory utilities		$460
Direct materials used		22,400		Depreciation, factory equipment		1,580
Work in process, 6/1/22		3,360		Direct labor		44,800
Work in process, 6/30/22		4,280		Maintenance, factory equipment		2,040
Finished goods, 6/1/22		5,600		Indirect materials		2,600
Finished goods, 6/30/22		8,400		Factory manager’s salary		3,360

Prepare an income statement through gross profit for June 2022 assuming sales revenue is $102,500.

SHEFFIELD CORPORATION Income Statement (Partial) choose the accounting period                                                                      June 30, 2022For the Year Ended June 30, 2022For the Month Ended June 30, 2022
select an income statement item                                                                      Cost of Goods Available for SaleCost of Goods ManufacturedCost of Goods SoldFinished Goods Inventory Inventory, June 1Finished Goods Inventory Inventory, June 30Gross ProfitSales RevenueDepreciation, Factory EquipmentDirect LaborDirect Materials UsedFactory Manager’s SalaryFactory UtilitiesIndirect LaborIndirect MaterialsMaintenance, Factory EquipmentManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsTotal Manufacturing OverheadWork in Process, June 1Work in Process, June 30				$enter a dollar amount
select an opening section name                                                                      Cost of Goods Available for SaleCost of Goods ManufacturedCost of Goods SoldFinished Goods Inventory, June 1Finished Goods Inventory, June 30Gross ProfitSales RevenueDepreciation, Factory EquipmentDirect LaborDirect Materials UsedFactory Manager’s SalaryFactory UtilitiesIndirect LaborIndirect MaterialsMaintenance, Factory EquipmentManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsTotal Manufacturing OverheadWork in Process, June 1Work in Process, June 30
select an income statement item                                                                      Cost of Goods Available for SaleCost of Goods ManufacturedCost of Goods SoldFinished Goods Inventory, June 1Finished Goods Inventory, June 30Gross ProfitSales RevenueDepreciation, Factory EquipmentDirect LaborDirect Materials UsedFactory Manager’s SalaryFactory UtilitiesIndirect LaborIndirect MaterialsMaintenance, Factory EquipmentManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsTotal Manufacturing OverheadWork in Process, June 1Work in Process, June 30		$enter a dollar amount
select an income statement item                                                                      Cost of Goods Available for SaleCost of Goods ManufacturedCost of Goods SoldFinished Goods Inventory, June 1Finished Goods Inventory, June 30Gross ProfitSales RevenueDepreciation, Factory EquipmentDirect LaborDirect Materials UsedFactory Manager’s SalaryFactory UtilitiesIndirect LaborIndirect MaterialsMaintenance, Factory EquipmentManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsTotal Manufacturing OverheadWork in Process, June 1Work in Process, June 30		enter a dollar amount
select a closing subsection name                                                                      Cost of Goods Available for SaleCost of Goods ManufacturedCost of Goods SoldFinished Goods Inventory, June 1Finished Goods Inventory, June 30Gross ProfitSales RevenueDepreciation, Factory EquipmentDirect LaborDirect Materials UsedFactory Manager’s SalaryFactory UtilitiesIndirect LaborIndirect MaterialsMaintenance, Factory EquipmentManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsTotal Manufacturing OverheadWork in Process, June 1Work in Process, June 30		enter a total amount for this subsection
select between addition and deduction                                                                      LessAdd: select an income statement item                                                                      Cost of Goods Available for SaleCost of Goods ManufacturedCost of Goods SoldFinished Goods Inventory, June 1Finished Goods Inventory, June 30Gross ProfitSales RevenueDepreciation, Factory EquipmentDirect LaborDirect Materials UsedFactory Manager’s SalaryFactory UtilitiesIndirect LaborIndirect MaterialsMaintenance, Factory EquipmentManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsTotal Manufacturing OverheadWork in Process, June 1Work in Process, June 30		enter a dollar amount
select a closing section name                                                                      Cost of Goods Available for SaleCost of Goods ManufacturedCost of Goods SoldFinished Goods Inventory, June 1Finished Goods Inventory, June 30Gross ProfitSales RevenueDepreciation, Factory EquipmentDirect LaborDirect Materials UsedFactory Manager’s SalaryFactory UtilitiesIndirect LaborIndirect MaterialsMaintenance, Factory EquipmentManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsTotal Manufacturing OverheadWork in Process, June 1Work in Process, June 30				enter a total amount for this section
select a closing name for this statement                                                                      Cost of Goods Available for SaleCost of Goods ManufacturedCost of Goods SoldFinished Goods Inventory, June 1Finished Goods Inventory, June 30Gross ProfitSales RevenueDepreciation, Factory EquipmentDirect LaborDirect Materials UsedFactory Manager’s SalaryFactory UtilitiesIndirect LaborIndirect MaterialsMaintenance, Factory EquipmentManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsTotal Manufacturing OverheadWork in Process, June 1Work in Process, June 30				$enter a total amount for this statement

Answer 1

Question No 1.

Question No 2.