Gopaul Electronics designs and manufactures specialized switches for the telecommunications industry. Theaccounting records of the business reflect the following data at December 31, 2023:Inventory 1/1/2023 31/12/2023Raw Materials $260,000 $230,000Work In Progress $333,800 $218,800Finished Goods $1,075,200 $615,000Other information:Sales Revenue $5,765,000Factory supplies 45,000Direct Factory Labor 735,000Special Design Cost 15,000Raw Materials Purchased 540,000Plant janitorial service 52,000Depreciation: Plant & Equipment 165,000Plant Utilities 385,000Plant supervisor’s salary 480,000Property Taxes 1 300,000R & D for Graphic Designs 70,500Office Utilities 165,000Insurance on Plant & Equipment 120,000Delivery truck driver’s wages 125,000Depreciation: Delivery truck 52,000Administrative Wages & Salaries 850,150Sales Commission 97,6501 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. d) Calculate the cost of goods manufactured for the year by Gopaul Electronics e) Prepare an income statement for Gopaul Electronics for the year ended December 31, 2023, clearly showingthe calculation of Cost of Goods Sold. List the non-production overheads in order of size starting with thelargest. f) What is the selling price per switch if Gopaul Electronics manufactured 1,500 switches for the period underreview and uses a mark-up of 331⁄3% on cost?
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 $5,765,000
Factory supplies 45,000
Direct Factory Labor 735,000
Special Design Cost 15,000
Raw Materials Purchased 540,000
Plant janitorial service 52,000
Depreciation: Plant & Equipment 165,000
Plant Utilities 385,000
Plant supervisor’s salary 480,000
Property Taxes 1
300,000
R & D for Graphic Designs 70,500
Office Utilities 165,000
Insurance on Plant & Equipment 120,000
Delivery truck driver’s wages 125,000
Depreciation: Delivery truck 52,000
Administrative Wages & Salaries 850,150
Sales Commission 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
c) Determine the prime cost & conversion cost of the product manufactured.
d) Calculate the cost of goods manufactured for the year by Gopaul Electronics
e) Prepare an income statement for Gopaul Electronics for the year ended December 31, 2023, clearly showing
the calculation of Cost of Goods Sold. List the non-production
largest.
f) What is the selling price per switch if Gopaul Electronics manufactured 1,500 switches for the period under
review and uses a mark-up of 331⁄3% on cost?
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