1. Calculate the raw material used by Pro-Leather Company. 2. Calculate the indirect materials used by Pro-Leather Company.3. What is the total manufacturing overhead cost incurred by Pro-Leather Company during the period? 4. Determine the prime cost & conversion cost of the cases manufactured.5. Prepare a schedule of cost of goods manufactured for the year ended December 31, 2020, clearly showing total manufacturing cost & total manufacturing costs to account for.6. Prepare an income statement for Pro-Leather Company for the year ended December 31, 2020. List the non-manufacturing overheads in order of size starting with the largest.7. What is the factory cost per case if Pro-Leather manufactured 19,200 cases for tablets for the year?8. How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising entity? Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertainsto operations during the 2020 calendar year.Sales RevenueDirect Factory Labor$14,275.0003.952,600Indirect Factory LaborTotal Depreciation'Total Utilities 2Distribution & Customer Service Costs1,232,250400,000525,00076,800Insurance on Plant & EquipmentProperty Taxes 3Administrative Wages & SalariesAdvertising ExpensesSales Commission585,00090,0001,076,00057.7006% of Sales Revenue*Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general andadministrative costs.* Of the total utilities, 75% relates to production and 25% relates to general and administrativecosts.3 The property taxes should be shared: 85% production & 15% general & administrative costsThe following additional information is also available:Inventory Data: 1/1/2020 Purchases 31/12/2020$750,000 $4.330,000320,000n/an/aRaw Materials$807,000Indirect Materials55,000Work in ProgressFinished Goods1,115.4001,142,60071,500924.0001,720,200

Direct materials and direct labor are components which is used in the manufacturing or production…

Answered: 1. Calculate the raw material used by…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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1. Calculate the raw material used by Pro-Leather Company.

2. Calculate the indirect materials used by Pro-Leather Company.

3. What is the total manufacturing overhead cost incurred by Pro-Leather Company during the period?

4. Determine the prime cost & conversion cost of the cases manufactured.

5. Prepare a schedule of cost of goods manufactured for the year ended December 31, 2020, clearly showing total manufacturing cost & total manufacturing costs to account for.

6. Prepare an income statement for Pro-Leather Company for the year ended December 31, 2020. List the non-manufacturing overheads in order of size starting with the largest.

7. What is the factory cost per case if Pro-Leather manufactured 19,200 cases for tablets for the year?

8. How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising entity?

Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains
to operations during the 2020 calendar year.
Sales Revenue
Direct Factory Labor
$14,275.000
3.952,600
Indirect Factory Labor
Total Depreciation'
Total Utilities 2
Distribution & Customer Service Costs
1,232,250
400,000
525,000
76,800
Insurance on Plant & Equipment
Property Taxes 3
Administrative Wages & Salaries
Advertising Expenses
Sales Commission
585,000
90,000
1,076,000
57.700
6% of Sales Revenue
*Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and
administrative costs.
* Of the total utilities, 75% relates to production and 25% relates to general and administrative
costs.
3 The property taxes should be shared: 85% production & 15% general & administrative costs
The following additional information is also available:
Inventory Data: 1/1/2020 Purchases 31/12/2020
$750,000 $4.330,000
320,000
n/a
n/a
Raw Materials
$807,000
Indirect Materials
55,000
Work in Progress
Finished Goods
1,115.400
1,142,600
71,500
924.000
1,720,200

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