Leather Authentic Company is a manufacturer of leather cases for tablets. The following information pertains to operations during the 2023 calendar year. Sales Revenue Direct Factory Labor Indirect Factory Labor $14,275,000 3,877,400 1,232,250 Total Depreciation ¹ 400,000 Total Utilities 2 525.000 Distribution & Customer Service Costs 76,800 Hireage of Special Labeling Equipment Insurance on Plant & Equipment Property Taxes 3 Administrative Wages & Salaries Advertising Expenses Sales Commission 6% of Sales Revenue 1 Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and administrative costs. ² Of the total utilities, 75% relates to production and 25% relates to general and administrative costs. 3 The property taxes should be shared: 85% production & 15% general & administrative costs The following additional information is also available: 75,200 585,000 90,000 1,076,000 57,700 Inventory Data: 1/1/2023 Purchases 31/12/2023 Raw Materials $750,000 $4,330,000 $807,000 Indirect Materials 55,000 320,000 71,500 Work in Progress 1,115,400 n/a 924,000 Finished Goods 1,142,600 n/a 1,720,200 Required: a) Calculate the raw material used by Leather Authentic Company. b) Calculate the indirect materials used by Leather Authentic Company c) What is the total manufacturing overhead cost incurred by Leather Authentic Company during the period? d) Determine the prime cost & conversion cost of the cases manufactured. e) Prepare a schedule of cost of goods manufactured for the year ended December 31, 2023, clearly showing total manufacturing cost & total manufacturing costs to account for. f) Prepare an income statement for Leather Authentic Company for the year ended December 31, 2023. List the non-manufacturing overheads in order of size starting with the largest. g) What is the selling price per case if Leather Authentic manufactured 9,600 cases for tablets for the year and uses a mark-up of 50% on cost? h) How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising entity?

Leather Authentic Company is a manufacturer of leather cases for tablets. The following information pertains to operations during the 2023 calendar year. Sales Revenue Direct Factory Labor Indirect Factory Labor $14,275,000 3,877,400 1,232,250 Total Depreciation ¹ 400,000 Total Utilities 2 525.000 Distribution & Customer Service Costs 76,800 Hireage of Special Labeling Equipment Insurance on Plant & Equipment Property Taxes 3 Administrative Wages & Salaries Advertising Expenses Sales Commission 6% of Sales Revenue 1 Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and administrative costs. ² Of the total utilities, 75% relates to production and 25% relates to general and administrative costs. 3 The property taxes should be shared: 85% production & 15% general & administrative costs The following additional information is also available: 75,200 585,000 90,000 1,076,000 57,700 Inventory Data: 1/1/2023 Purchases 31/12/2023 Raw Materials $750,000 $4,330,000 $807,000 Indirect Materials 55,000 320,000 71,500 Work in Progress 1,115,400 n/a 924,000 Finished Goods 1,142,600 n/a 1,720,200 Required: a) Calculate the raw material used by Leather Authentic Company. b) Calculate the indirect materials used by Leather Authentic Company c) What is the total manufacturing overhead cost incurred by Leather Authentic Company during the period? d) Determine the prime cost & conversion cost of the cases manufactured. e) Prepare a schedule of cost of goods manufactured for the year ended December 31, 2023, clearly showing total manufacturing cost & total manufacturing costs to account for. f) Prepare an income statement for Leather Authentic Company for the year ended December 31, 2023. List the non-manufacturing overheads in order of size starting with the largest. g) What is the selling price per case if Leather Authentic manufactured 9,600 cases for tablets for the year and uses a mark-up of 50% on cost? h) How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising entity?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter10: Accounting Systems For Manufacturing Operations

Section: Chapter Questions

Problem 10.3E: Classifying costs as factory overhead Which of the following items are properly classified as part...

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