Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains to operations during the 2020 calendar year. Sales Revenue $14,275,000 Direct Factory Labor Indirect Factory Labor Total Depreciation ' Total Utilities 2 3,952,600 1,232,250 400,000 525,000 Distribution & Customer Service Costs 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. 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: Inventory Data: 1/1/2020 Purchases 31/12/2020 Raw Materials $750,000 $4,330,000 $807,000 Indirect Materials 55,000 320,000 71,500 Work in Progress n/a n/a 1,115,400 924,000 Finished Goods 1,142,600 1,720,200 Required: a) Calculate the raw material used by Pro-Leather Company. b) Calculate the indirect materials used by Pro-Leather Company c) What is the total manufacturing overhead cost incurred by Pro-Leather 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, 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.
Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains to operations during the 2020 calendar year. Sales Revenue $14,275,000 Direct Factory Labor Indirect Factory Labor Total Depreciation ' Total Utilities 2 3,952,600 1,232,250 400,000 525,000 Distribution & Customer Service Costs 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. 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: Inventory Data: 1/1/2020 Purchases 31/12/2020 Raw Materials $750,000 $4,330,000 $807,000 Indirect Materials 55,000 320,000 71,500 Work in Progress n/a n/a 1,115,400 924,000 Finished Goods 1,142,600 1,720,200 Required: a) Calculate the raw material used by Pro-Leather Company. b) Calculate the indirect materials used by Pro-Leather Company c) What is the total manufacturing overhead cost incurred by Pro-Leather 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, 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
Related questions
Question
Please answer parts d, e, f, g, & h
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
$14,275,000
Direct Factory Labor
Indirect Factory Labor
Total Depreciation !
3,952,600
1,232,250
400,000
Total Utilities 2
525,000
Distribution & Customer Service Costs
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
1Of 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:
Inventory Data: 1/1/2020 Purchases 31/12/2020
Raw Materials
$750,000 $4,330,000
$807,000
Indirect Materials
55,000
320,000
71,500
Work in Progress
Finished Goods
n/a
n/a
1,115,400
924,000
1,142,600
1,720,200
Required:
a) Calculate the raw material used by Pro-Leather Company.
b) Calculate the indirect materials used by Pro-Leather Company
c) What is the total manufacturing overhead cost incurred by Pro-Leather 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, 2020, clearly
showing total manufacturing cost & total manufacturing costs to account for.
f) 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.
g) What is the factory cost per case if Pro-Leather manufactured 19,200 cases for tablets for the year?
h) How does the format of the income statement for a manufacturing concern differ trom the income
statement of a merchandising entity?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education