Prepare a schedule of cost of goods manufactured for the year ended December 31, 2020, clearly showing total manufacturing cost & total manufacturing costs to account for. Prepare an income statement for Pro-Leather Company for the year ended December 31, 2020. List the non-manufacturing overheads in order of size starting with the largest.
Prepare a schedule of cost of goods manufactured for the year ended December 31, 2020, clearly showing total manufacturing cost & total manufacturing costs to account for. Prepare an income statement for Pro-Leather Company for the year ended December 31, 2020. List the non-manufacturing overheads in order of size starting with the largest.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prepare a schedule of cost of goods manufactured for the year ended December 31, 2020, clearly
showing total manufacturing cost & total
Prepare an income statement for Pro-Leather Company for the year ended December 31, 2020. List the non-manufacturing overheads in order of size starting with the largest.
Transcribed Image Text:Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains
to operations during the 2020 calendar year.
Sales Revenue
Direct Factory Labor
$14,275.000
3.952,600
Indirect Factory Labor
Total Depreciation'
Total Utilities 2
Distribution & Customer Service Costs
1,232,250
400,000
525,000
76,800
Insurance on Plant & Equipment
Property Taxes 3
Administrative Wages & Salaries
Advertising Expenses
Sales Commission
585,000
90,000
1,076,000
57.700
6% of Sales Revenue
*Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and
administrative costs.
* 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:
Inventory Data: 1/1/2020 Purchases 31/12/2020
$750,000 $4.330,000
320,000
n/a
n/a
Raw Materials
$807,000
Indirect Materials
55,000
Work in Progress
Finished Goods
1,115.400
1,142,600
71,500
924.000
1,720,200
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