For the year 2020, the following cost data pertain to the Leatherex Company's manufacturing activities: Costs of manufacturing overhead: Factory property taxes are $1,500. Factory 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 3,000 indirect materials 5,000 hours of indirect work Factory depreciation is 12,000 dollars. 3,000 in factory insurance $27,000 in total Other expenses incurred include: Direct material purchases totaled $16,000. $20,000 was spent on direct labour. Stockpiles: January 1st, direct materials $4,000 December 31st, direct materials $3,500.00 $3,000 for work in progress as of January 1st. December 31st, work in progress $3,750.00 January 1st, Finished Goods $3,850 December 31 Finished Goods $3,400 To apply manufacturing, the company uses a fixed overhead rate based on machine hour. Production costs include overhead. Last year, the cost was $5.00 per machine-hour. At the start of this, The production manager expected to use the following basis for calculating predetermined overhead this year. rate: $24,000 in manufacturing overhead and 4,000 computer hours used Due to a surge in demand, For the year, a total of 5,000 machine-hours were registered. Requirements: 1. Establish a year-end Cost of Goods Manufactured plan. (No. 5) 2. Make a cost-of-goods-sold plan. (No. 5)
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For the year 2020, the following cost data pertain to the Leatherex Company's
Costs of manufacturing overhead:
Factory property taxes are $1,500.
Factory 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
3,000 indirect materials
5,000 hours of indirect work
Factory
3,000 in factory insurance
$27,000 in total
Other expenses incurred include:
Direct material purchases totaled $16,000.
$20,000 was spent on direct labour.
Stockpiles:
January 1st, direct materials $4,000
December 31st, direct materials $3,500.00
$3,000 for work in progress as of January 1st.
December 31st, work in progress $3,750.00
January 1st, Finished Goods $3,850
December 31 Finished Goods $3,400
To apply manufacturing, the company uses a fixed overhead rate based on machine hour.
Production costs include overhead. Last year, the cost was $5.00 per machine-hour. At the start of this,
The production manager expected to use the following basis for calculating predetermined overhead this year.
rate: $24,000 in manufacturing overhead and 4,000 computer hours used Due to a surge in demand,
For the year, a total of 5,000 machine-hours were registered.
Requirements:
1. Establish a year-end Cost of Goods Manufactured plan. (No. 5)
2. Make a cost-of-goods-sold plan. (No. 5)
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