e factory supplies us
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Need andwer for question
b, c and d
Transcribed Image Text:Personal Protective Gears & More (PPGM) design and manufacture masks for students. After
production, the masks are placed into individual cases, before being transferred into Finished Goods. The
accounting records of the business reflect the following data at June 30, 2021, for the manufacturing of
masks for Mount Marlie High School.
Inventory
1/7/2020 30/6/2021
$230,000
$35,000
Work in Progress $348,300
$632,900
Raw Materials
$260,000
Factory Supplies
$24,000
$203,300
$485,000
Finished Goods
Other information:
Sales Revenue
Factory Supplies Purchased
Direct Factory Labor
Raw Materials Purchased
$5,731,000
64,000
792,000
560,000
Plant janitorial service
Depreciation: Plant & Equipment
Total Utilities !
Production Supervisor's Salary
Design Costs (School Logo)
Packaging Cases Cost
Total Insurance 2
37,000
186,000
481,250
450,000
26,000
42,000
168,000
Delivery Vehicle Drivers' Wages
Depreciation: Delivery Vehicle
Property Taxes 3
Administrative Wages & Salaries
Advertising & Selling Expenses
181,500
53,290
240,000
801,250
1% of Sales Revenue
1Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.
2 Of the total insurance, 66%% relates to the Factory Plant & Equipment & 33%% relates to general &
administrative costs.
3 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs
Required:
a) Calculate the raw material used by Personal Protective Gears & More.
b) Calculate the factory supplies used by Personal Protective Gears & More.
c) What is the total factory overhead costs incurred by Personal Protective Gears & More during the
period?
d) Determine the prime cost & conversion cost of the masks manufactured.
Expert Solution
b) Formula to calculate factory supplies used
Factory supplies used = Beginning factory supplies + Factory supplies purchased - Ending factory supplies
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