All School Logos & More (ASLM) design and manufacture school uniform crests. After production, the crests are placed into individual plastic cases, before being transferred into Finished Goods. The accounting records of the business for the quarter to December 31, 2021, for the manufacturing of uniform crests for Hill Point High School are given below Inventory 1/10/2021 31/12/2021 Raw Materials $72,000 $65,000 Work in Progress $138,875 $
All School Logos & More (ASLM) design and manufacture school uniform crests. After production,
the crests are placed into individual plastic cases, before being transferred into Finished Goods. The
accounting records of the business for the quarter to December 31, 2021, for the manufacturing of uniform
crests for Hill Point High School are given below
| Inventory | 1/10/2021 | 31/12/2021 |
| Raw Materials | $72,000 | $65,000 |
| Work in Progress | $138,875 | $129,125 |
| Finished Goods | $149,500 | $141,700 |
Other information:
| Sales Revenue | $1,694,950 |
| Factory Labour | 239,700 |
| Raw Materials Purchased | 235,000 |
| Office Cleaner’s Wages | 4,500 |
| Factory Supplies Used | 23,500 |
| 32,000 | |
| Total Utilities1 | 118,750 |
| Plant Supervisor’s Salary | 180,000 |
| Design Costs (School Logo) | 4,300 |
| Packaging Material Cost | 35,000 |
| Total Insurance 2 | 60,000 |
| Delivery Vehicle Drivers’ Wages | 41,250 |
| Depreciation: Delivery Vehicle | 7,250 |
| Property Taxes 3 | 105,000 |
| Administrative Wages & Salaries | 123,750 |
| Sales Commission | 2% of Net Profit before Commission |
1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.
2 Of the total insurance, 66⅔% relates to the manufacturing facilities & 33⅓% relates to the office area
3 The property taxes should be shared: 75% factory facilities & 25% general & administrative costs
a) What is the selling price per crest if All School Logos & More manufactured 2,800 crests for Hill Point
High School for the quarter under review and uses a mark-up of 50% on cost?
b) Explain the difference between a product cost and a period cost. How does the product cost of a
manufacturer differ from the product cost of a merchandiser?
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