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Total cost of work in proems 221,500 (c) 337,000
Work in process 12/31/17 70,000
(c)
11,000
Cost of goods manufactured 185,275 (f)
(i)
Instructions
Indicate the missing amount for each letter (a) through (i).
E1-2A
E1, 2A Bell Company, a manufacturer of audio systems, started
its production in October, 2017. For the preceding 3 years, Bell
had been a retailer of audio systems. After a thorough survey of
audio system markets, Bell decided to turn its retail store into an
audio equipment factory.
Raw materials cast for an audio system will total $74 per unit.
Workers on the production lines are on average paid $12 per
hour. An audio system usually takes 5 hours to complete. In
addition, the rent on the equipment used to assemble audio
systems amount to $4,900 per month. Indirect materials cost $5
per system. A supervisor was hired to oversee production; her
monthly salary is $3,000.
Factory janitorial casts arc $1,300 monthly. Advertising costs
for the audio system will be $9,500 per month. The factory
building depreciation expense is $7,800 per year. Property taxes
on the factory building will be $9,000 per year.
Instructions
(a) Prepare an answer sheet with the following column
headings. Assuming that Bell manufactures, on average, 1,500
audio systems per month, enter each cost item on your answer
sheet, placing the dollar amount per month under the