Assessment #1 _Cost Classification Inventory valuation Question 1 Part 1 Gopaul Electronics designs and manufactures specialized switches for the telecommunications industry. The accounting records of the business reflect the following data at December 31, 2023: Inventory 1/1/2023 31/12/2023 Raw Materials $260,000 $230,000 Work In Progress $333,800 $218,800 Finished Goods $1,075,200 $615,000 Other information: Sales Revenue Factory supplies Direct Factory Labor Special Design Cost Raw Plant janitorial service Depreciation: Plant & Equipment Purchased Plant Utilities Plant supervisor's salary Property Taxes ¹ R & D for Graphic Designs Office Utilities Insurance on Plant & Equipment Delivery truck driver's wages Depreciation: Delivery truck Administrative Wages & Salaries Sales Commission $5,765,000 45,000 735,000 15,000 540,000 52,000 165,000 385,000 480,000 300,000 70,500 165,000 120,000 125,000 52,000 850,150 97,650 ¹ The property taxes should be shared: 60% manufacturing & 40% general & administrative costs. Required: a) Calculate the raw material used by Gopaul Electronics. b) What is the total factory overhead cost incurred by Gopaul Electronics during the period? c) Determine the prime cost & conversion cost of the product manufactured. [[[
Assessment #1 _Cost Classification Inventory valuation Question 1 Part 1 Gopaul Electronics designs and manufactures specialized switches for the telecommunications industry. The accounting records of the business reflect the following data at December 31, 2023: Inventory 1/1/2023 31/12/2023 Raw Materials $260,000 $230,000 Work In Progress $333,800 $218,800 Finished Goods $1,075,200 $615,000 Other information: Sales Revenue Factory supplies Direct Factory Labor Special Design Cost Raw Plant janitorial service Depreciation: Plant & Equipment Purchased Plant Utilities Plant supervisor's salary Property Taxes ¹ R & D for Graphic Designs Office Utilities Insurance on Plant & Equipment Delivery truck driver's wages Depreciation: Delivery truck Administrative Wages & Salaries Sales Commission $5,765,000 45,000 735,000 15,000 540,000 52,000 165,000 385,000 480,000 300,000 70,500 165,000 120,000 125,000 52,000 850,150 97,650 ¹ The property taxes should be shared: 60% manufacturing & 40% general & administrative costs. Required: a) Calculate the raw material used by Gopaul Electronics. b) What is the total factory overhead cost incurred by Gopaul Electronics during the period? c) Determine the prime cost & conversion cost of the product manufactured. [[[
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Assessment #1 _Cost Classification Inventory valuation
Question 1
Part 1
Gopaul Electronics designs and manufactures specialized switches for the telecommunications industry. The
accounting records of the business reflect the following data at December 31, 2023:
Inventory
1/1/2023
31/12/2023
Raw Materials
$260,000
$230,000
Work In Progress
$333,800
$218,800
Finished Goods $1,075,200 $615,000
Other information:
Sales Revenue
Factory supplies
Direct Factory Labor
Special Design Cost
Raw
Plant janitorial service
Depreciation: Plant & Equipment
Purchased
Plant Utilities
Plant supervisor's salary
Property Taxes ¹
R & D for Graphic Designs
Office Utilities
Insurance on Plant & Equipment
Delivery truck driver's wages
Depreciation: Delivery truck
Administrative Wages & Salaries
Sales Commission
$5,765,000
45,000
735,000
15,000
540,000
52,000
165,000
385,000
480,000
300,000
70,500
165,000
120,000
125,000
52,000
850,150
97,650
¹ The property taxes should be shared: 60% manufacturing & 40% general & administrative costs.
Required:
a) Calculate the raw material used by Gopaul Electronics.
b) What is the total factory overhead cost incurred by Gopaul Electronics during the period?
c) Determine the prime cost & conversion cost of the product manufactured.
[[[
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