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In: Accounting

Waterway Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted...

Waterway 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). Waterway’s monthly manufacturing cost and other expense data are as follows.
Rent on factory equipment $11,300
Insurance on factory building 1,700
Raw materials (plastics, polystyrene, etc.) 84,800
Utility costs for factory 1,000
Supplies for general office 300
Wages for assembly line workers 65,700
Depreciation on office equipment 800
Miscellaneous materials (glue, thread, etc.) 1,300
Factory manager’s salary 6,500
Property taxes on factory building 500
Advertising for helmets 15,100
Sales commissions 11,000
Depreciation on factory building 1,600
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


Cost Item

Direct
Materials

Direct
Labor

Manufacturing
Overhead

Period
Costs

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
$ $ $ $
Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 15.25.)
Production cost per helmet $

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