Problem
Echo Sports Company produces home basketball goal systems consisting of a stand, backboard, rim, and net. The company has sufficient orders and capacity to produce 800 goal systems per month. Manufacturing costs and other costs are shown below:
|
Administrative salary
|
2,400.00
|
|
Depreciation on office equipment
|
400.00
|
|
Depreciation on production equipment
|
1,800.00
|
|
Electric and other factory utilities
|
1,400.00
|
|
Factory supervisor salary
|
2,000.00
|
|
Fiberglass backboards purchased from another manufacturer
|
30,400.00
|
|
Insurance on factory building and contents
|
600.00
|
|
Maintenance costs on factory equipment
|
1,200.00
|
|
Nets and rims purchased from another manufacturer
|
6,400.00
|
|
Rent on factory building
|
2,000.00
|
|
Sales commissions
|
1,600.00
|
|
Steel pipe for stand fabrication
|
14,920.00
|
|
Supplies for administrative office
|
600.00
|
|
Wages for production workers
|
14,720.00
|
|
80,440.00
|
Enter each manufacturing cost in the appropriate column.
|
Leave blank if it does not fil in any column.
|
Direct Materials
|
Direct Labor
|
Manufacturing Overhead
|
|
Administrative salary
|
|
|
|
|
Depreciation on office equipment
|
|
|
|
|
Depreciation on production equipment
|
|
|
|
|
Electric and other factory utilities
|
|
|
|
|
Factory supervisor salary
|
|
|
|
|
Fiberglass backboards purchased from another manufacturer
|
|
|
|
|
Insurance on factory building and contents
|
|
|
|
|
Maintenance costs on factory equipment
|
|
|
|
|
Nets and rims purchased from another manufacturer
|
|
|
|
|
Rent on factory building
|
|
|
|
|
Sales commissions
|
|
|
|
|
Steel pipe for stand fabrication
|
|
|
|
|
Supplies for administrative office
|
|
|
|
|
Wages for production workers
|
|
|
|
|
Totals
|
-
|
-
|
-
|
Compute the cost to produce 1 basketball goal system cost per unit.