90.2K

Verified Solution

Link Copied!

Flint Company, a manufacturer of audio systems, started its production in October 2022 . For the preceding 3 years, Flint had been a retailer of audio systems. After a thorough survey of audio system markets, Flint decided to turn its retail store into an audio equipment factory. Raw material costs for an audio system will total $77 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,310 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; her monthly salary is $5,750. Factory janitorial costs are $1,640 monthly. Advertising costs for the audio system will be $9,230 per month. The factory building depreciation expense is $6,960 per year. Property taxes on the factory building will be $8,640 per year. (a) Assuming that Flint manufactures, on average, 1,400 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns. \begin{tabular}{|c|c|c|c|} \hline & Product Costs & & \\ \hline \begin{tabular}{l} Direct \\ Materials \\ \end{tabular} & \begin{tabular}{l} Direct \\ Labor \end{tabular} & \begin{tabular}{c} Manufacturing \\ Overthead \end{tabular} & \begin{tabular}{l} Period \\ costs \end{tabular} \\ \hline 0 & 0 i & 01 & - 1 \\ \hline 0 i & 0 & 01 & - 1 \\ \hline 01 & 01 & 0 & 0i \\ \hline 01 & 01 & 0 & 01 \\ \hline 01 & 01 & 0 & 01 \\ \hline 01 & 01 & 0 & 0 i \\ \hline 01 & 01 & 01 & \\ \hline 01 & 01 & 0 & 0 i \\ \hline 01 & 0 i & 0 & 0 \\ \hline 0 & s & s & s \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert

See Answer