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Question - Agler Company specializes in manufacturing motorcycle helmets. The company has enough orders to keep the factory production at 1,000 motorcycle helmets per month. Agler's monthly manufacturing cost and other expense data are shown on the next page.
Maintenance costs on factory building
$1,500
Factory manager's salary
5,500
Advertising for helmets
8,000
Sales commissions
4,000
Depreciation on factory building
700
Rent on factory equipment
6,000
Insurance on factory building
3,000
Raw materials (plastic, polystyrene, etc.)
25,000
Utility costs for factory
800
Supplies for general of?ce
200
Wages for assembly line workers
54,000
Depreciation on of?ce equipment
500
Miscellaneous materials (glue, thread, etc.)
2,000
Instructions -
(a) Prepare an answer sheet with the following column headings.
Cost Item
Product Costs
Period Costs
Direct Materials
Direct Labor
Manufacturing Overhead
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.
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