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
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) Calculate the raw material used by All School Logos & More.
(b) What is the total
(c) Prepare a schedule of cost of goods manufactured for the quarter ended December 31, 2021, clearly
showing total manufacturing cost & total manufacturing costs to account for
(d)Determine the prime cost & conversion cost of the School crests produced
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