Part 1 Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounti records of the business reflect the following data at June 30, 2018: Inventory 1/7/2017 30/6/2018 Raw Materials $230,000 $260,000 Factory Supplies $35,000 $24,000 Work in Progress $358,000 $213,000 Finished Goods $975,400 $585,000 Other information: Sales Revenue Factory Supplies Purchased Direct Factory Labor Raw Materials Purchased Plant janitorial service Depreciation: Plant & Equipment Total Utilities $5,675,000 64,000 792,000 560,000 37,000 186,000 481 250
Part 1 Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounti records of the business reflect the following data at June 30, 2018: Inventory 1/7/2017 30/6/2018 Raw Materials $230,000 $260,000 Factory Supplies $35,000 $24,000 Work in Progress $358,000 $213,000 Finished Goods $975,400 $585,000 Other information: Sales Revenue Factory Supplies Purchased Direct Factory Labor Raw Materials Purchased Plant janitorial service Depreciation: Plant & Equipment Total Utilities $5,675,000 64,000 792,000 560,000 37,000 186,000 481 250
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question
Please solve sub-parts D, E and F
Transcribed Image Text:Part 1
Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounting
records of the business reflect the following data at June 30, 2018:
Inventory
1/7/2017
30/6/2018
Raw Materials $230,000 $260,000
Factory Supplies
$35,000 $24,000
Work in Progress $358,000 $213,000
Finished Goods $975,400 $585,000
Other information:
Sales Revenue
Factory Supplies Purchased
Direct Factory Labor
Raw Materials Purchased
Plant janitorial service
Depreciation: Plant & Equipment
Total Utilities 1
Production Supervisor's Salary
Hiring of Specialized Manufacturing Equipment
Insurance on Plant & Equipment
Delivery Vehicle Drivers' Wages
Depreciation: Delivery Vehicle
Property Taxes 2
Administrative Wages & Salaries
Advertising Expenses
$5,675,000
64,000
792,000
560,000
37,000
186,000
481,250
450,000
68,000
112,000
189,000
53,850
240,000
850,750
1% of Sales Revenue
1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.
2 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs
Required:
(A) Calculate the raw mate factory supplies used by Shades of the Caribbean:
(B) What is the total manufacturing overhead cost incurred by Shades of the Caribbean during the
period?
(C) Determine the prime cost & conversion cost of the product manufactured.
(D) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2018, clearly
showing total manufacturing costs & total manufacturing costs to account for.
(E) Prepare an income statement for the year ended June 30, 2018, clearly showing the calculation of
Cost of Goods sold. List the non-production overheads in order of size starting with the largest.
COS
(F) Given that the company manufactured 1,600 sun-glasses, compute the company's unit product cost
for the year.
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