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 Labour $3,952,600 Indirect Factory Labour $1,232,250 Total depreciation 1 400,000 Total Utilities 525,000 Distribution and customer service costs 76,800 Insurance on plant and equipment 585,000 Property taxes 3 90,000 Administrative Wages and Salaries 1,076,000 Advertising Expenses 57,700 Sales commission 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 the production and 25% relates to general and administrative costs. The property taxes should be shared: 85% production & 15% general & administrative costs The following additional information is also available: Inventory Date: 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 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 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?
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 Labour |
$3,952,600 |
Indirect Factory Labour |
$1,232,250 |
Total
|
400,000 |
Total Utilities |
525,000 |
Distribution and customer service costs |
76,800 |
Insurance on plant and equipment |
585,000 |
Property taxes 3 |
90,000 |
Administrative Wages and Salaries |
1,076,000 |
Advertising Expenses |
57,700 |
Sales commission |
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 the production and 25% relates to general and administrative costs.
- The property taxes should be shared: 85% production & 15% general & administrative costs
The following additional information is also available:
Inventory Date: |
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 |
1,115,400 |
n/a |
924,000 |
Finished Goods |
1,142,600 |
n/a |
1,720,200 |
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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?
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