PROBLEM #1 There are three problems this week. Click the tabs at the bottom of t

Question

PROBLEM #1

There are three problems this week. Click the tabs at the bottom of the spreadsheet to go to problems 2 and 3. 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. Direct Direct Manufacturing Leave blank if it does not fit in any column. Materials Labor 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                          -                               -                             -  

Explanation / Answer

Solution:

Direct Materials Direct Labor Manufacturing Overhead 1 Administrative salary 0 0 0 2 Depreciation on office equipment 0 0 0 3 Depreciation on production equipment 1,800 4 Electric and oth factory utilities 1400 5 Factory supervisor salary 2,000 6 Fiberglass backboards purchased from another manufacturer 30,400 7 Insurance on factory building and contents 600 8 Maintenance costs on factory equipment 1,200 9 Nets and rims purchased from another manufacturer 6400 10 Rent on Factory building 2,000 11 Sales commissions 0 0 0 12 Steel pipes for stand fabrication 14,920 0 0 13 Supplies for administrative office 0 0 0 14 Wages for production workers 14,720 51,720 14,720 9,000

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