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Cost Items and Account Balances Administrative salaries Advertising for helmets. Cash, January 1.... Depreciation on factory building. Depreciation on office equipment. Insurance on factory building... Miscellaneous expenses - factory. Office supplies expense. Professional fees... Property taxes on factory building. Raw Materials used in production Rent on production equipment. Research & Development.. Sales commissions (10% of sales). Utility costs - factory Wages - Factory direct labor.. Work in process, January 1 Work in process, January 31. Raw materials inventory, January 1. Raw materials inventory, January 31. Raw materials purchases. Finished goods inventory, January 1. $10,500.00 $11,000.00 S $ 1,500.00 $ 800.00 $ 1,200.00 S 500.00 $ 300.00 $ 800.00 $ 400.00 $60,000.00 $ 5,000.00 $10,000.00 $32,000.00 S 900.00 $87,500.00 S S S $12,000.00 $72,000.00 S Production and Sales Data Number of helmets produced Expected sales in units for January Expected sales in units for February Desired ending inventory Direct materials needed per 1 finished unit Direct materials cost Desired direct materials inventory Direct labor hours per unit Direct labor hourly rate 10,000 8,000 $40 Unit sell price 10,000 20% of next month's sales 1 Kilogram $6 per kilogram 20% of next months' production 0.35 hour $25 per hour Cash Flow Data Cash collection from customers: 70% in month of sale and 30% the following month. Cash payments to suppliers: 75% in month of purchase and 25% the following month. Income tax rate: 35% Manufacturing overhead and selling and administrative costs are paid as incurred. Desired ending cash balance: $ 20,000 (financing is necessary if cash balance falls below the $20,000 minimum). Part 3 - Prepare a schedule of cost of goods manufactured for the month of January, 2013. (Don't forget the heading) Cost of Goods Manufactured Schedule $ Work in process inventory, Direct materials: Total Cost of Materials Available for Use Direct Materials Used + Direct labor: + Manufacturing overhead: Total manufacturing overhead Total manufacturing costs incurred during the period Total manufacturing costs in Work-in-process Less = Cost of Goods Manufactured

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