Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Determine the cost of producing a helmet.
Armstrong Helmet Company manufactures a unique model of bicycle helmet. The company began operations December 1, 2006. Its accountant quit the second week of operations, and the company is searching for a replacement. The company has decided to test the knowledge and ability of all candidates interviewing for the position. Each candidate will be provided with the information below and then asked to prepare a series of reports, schedules, budgets, and recommendations based on that information. The information provided to each candidate is:
Cost items and account balances
Administrative salaries
$15,500
Advertising for helmets
11,000
Cash, December 1
0
Depreciation on factory building
1,500
Depreciation on office equipment
800
Insurance on factory building
Miscellaneous expense - factory
1,000
Office supplies expense
300
Professional fees
500
Property taxes on factory building
400
Raw materials used
70,000
Rent on production equipment
6,000
Research and development
10,000
Sales commissions
40,000
Utility costs - factory
900
Wages - factory
Work in progress, December 1
Work in progress, December 31
Raw materials inventory, December 31
Raw materials purchases
Finished goods inventory, December 1
Production and sales data
Number of helmets produced
Expected sales in units for December ($40 unit sales price)
8,000
Expected sales in units for January
Desired ending inventory
20% of next month\'s sales
Direct materials per finished unit
1 kilogram
Direct materials cost
$7 per kilogram
Direct labor hours per unit
0.35
Direct labor hourly rate
$20
Cash flow data Cash collections from customers: 75% in month of sale & 25% the following month. Cash payments to suppliers: 75% in month of purchase & 25% the following month. Income tax rate: 45%. Cost of proposed production equipment: $720,000. Manufacturing overhead and selling & admin costs are paid as incurred. Desired ending cash balance: $30,000.
Using the data presented above, do the following: Determine the cost of producing a helmet.
It sold 150 units for $45 each from March 1 through December 31. If the company uses the Last-In, First-Out inventory costing method, illustrate what is the amount of Cost of goods sold on the December 31 income statement
What payments must Zach Taylor make to settle the loan at the interest rate of 9%, but with the 6 payments beginning on the day the loan is signed?
Determine the payback period for the proposed investment and determine the net present value for the proposed investment.
confidence interval for the population proportion of adults.a readers digestgallup survey on the drinking habits of
Purpose a budgeted income statement for 2009 and Should mega change the selling price?
The church did not keep a record of the amounts given nor the contributors, but the minister estimates that these gifts amount $10,000 in the current year. How should he treat these gifts?
Determine the net present value of the investment in the service center. Should Munster invest in the service center? Calculate internal rate of return of the investment to the nearest ½ percent.
During the year the partnership incurs a $ 120,000 loss. Explain how much of the loss can Karen report on her tax return for the current year?
Explain the company's existing policy regarding dividends and/or share repurchases Has the policy changed considerably over time?
Analyze the financial statements and assess whether the financial performance has improved or declined year-over-year.
Evaluate the total gross estate and determine the total gross estate deductions?
Why do bond prices go down when interest rates go up? Don't lenders like high interest rates and what coupon rate would they have to pay in order to sell at par if they paid their coupons anually?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd