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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text: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
Transcribed Image Text: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?
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