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Total manufacturing costs
Work in process 1/1/17
195,650 (d)
(b)
253,700
16,500
(h)
Total cost of work in proems 221,500 (c) 337,000
Work in process 12/31/17 (c) 70,000
Cost of goods manufactured 185,275 (f)
11,000
(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