Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertainsto operations during the 2020 calendar year.Sales Revenue$14,275,000Direct Factory LaborIndirect Factory LaborTotal Depreciation !3,952,6001,232,250400,000Total Utilities 2525,00076,800585,000Distribution & Customer Service CostsInsurance on Plant & EquipmentProperty Taxes 3Administrative Wages & SalariesAdvertising Expenses90,0001,076,00057,700Sales Commission6% of Sales Revenue1Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general andadministrative costs.2 Of the total utilities, 75% relates to production and 25% relates to general and administrativecosts.3 The property taxes should be shared: 85% production & 15% general & administrative costs The following additional information is also available:Inventory Data: 1/1/202o Purchases 31/12/2020$750,000 $4,330,000Raw Materials$807,000Indirect Materials55,000320,00071,500Work in Progress1,115,4001,142,600n/an/a924,000Finished Goods1,720,200Required:a) Calculate the raw material used by Pro-Leather Company.(2 marks)b) Calculate the indirect materials used by Pro-Leather Company(2 marks)c) What is the total manufacturing overhead cost incurred by Pro-Leather Company during theperiod?d) Determine the prime cost & conversion cost of the cases manufactured.(3 marks)(3 marks)e) Prepare a schedule of cost of goods manufactured for the year ended December 31, 2020, clearlyshowing total manufacturing cost & total manufacturing costs to account for.(5 marks)f) Prepare an income statement for Pro-Leather Company for the year ended December 31, 2020. Listthe non-manufacturing overheads in order of size starting with the largest.(62 marks)g) What is the factory cost per case if Pro-Leather manufactured 19,200 cases for tablets for the year?(2 marks)h) How does the format of the income statement for a manufacturing concern differ from the income(12 marks)statement of a merchandising entity?"The only place you will ever find success before work is in the dictionary" uriel salmonPage 2

Overhead is the cost incurred by the company directly in the production process of the company.

Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains o operations during the 2020 calendar year. Sales Revenue $14,275,000 Direct Factory Labor Indirect Factory Labor 3,952,600 1,232,250

Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains o operations during the 2020 calendar year. Sales Revenue $14,275,000 Direct Factory Labor Indirect Factory Labor 3,952,600 1,232,250

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Computer Company is a manufacturer of personal computers and tablets. During its first month of…

A: Introduction Cost of goods manufactured: Cost of goods manufactured is the cost incurred by the…

Q: otal utilities, 80% relates to the manufacturing facilities & 20% relates to the office area.…

A: Direct Materials refers to the raw materials used to manufacture a product. Normally all the direct…

Q: (a) What is the amount of the inventoriable cost per unit? (b) Calculate the following under…

A: Variable Costing-In management accounting, variable costing is a term that refers to the income…

Q: Use the following selected information for Jim Beam Company For the year ended 31st December 2020…

A: Factory overhead is indirect labor and indirect cost involved in operating manufacturing business.…

Q: Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company…

A: Cost Of Goods Sold :— Cost Of Goods Sold is the Cost of Goods which is incurred on the Goods…

Q: Compute for the following (Show your solution in the space provided) : 4. Conversion Cost

A: Conversion cost: Conversion cost is the cost that occurred in the factory to convert the direct…

Q: The following information relates to EAZ Company for the year ended December 31, 2018: Raw materials…

A: Cost of goods manufactured - Cost of Goods Manufactured is the total cost incurred for manufactured…

Q: Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounting…

A: Prime Cost=Raw Materials Used+Direct Factory Labor Conversion Cost=Direct Factory Labor+Total…

Q: Skysong Company reports the following costs and expenses in May. Factory utilities $14,200…

A: Product Costs mean the costs incurred directly or indirectly related to the production of a product.…

Q: The gross earnings of factory workers for Cullumber Company during the month of January are…

A: Factory Labor Cost -This represents the labor manpower used in the production. The factory labor…

Q: d) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2020, clearly…

A: Direct Material Cost=Beginning Direct Meterial Inventory+Raw Material Purchased-Ending Direct…

Q: Larkspur Company reports the following costs and expenses in May. Factory utilities $16,000…

A: Period costs mean costs other than the product costs. These costs are not incurred on the production…

Q: Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and…

A: Absorption costing is used to ascertain the cost per unit. In absorption costing, only production…

Q: 1) Determine the total amount of manufacturing overhead. Manufacturing overhead $ 2) Determine…

A: Manufacturing Overhead: Factory utilities $18,700 Depreciation on factory equipment 15,370…

Q: North Country Industries manufactures Adirondack chairs. The company reported the following costs…

A: Depreciation- for delivery truck is form part of selling expenses and not be considered as overhead…

Q: Sage Hill Company reports the following costs and expenses in May. Factory utilities $13,600…

A: A. Manufacturing overhead = Factory utilities + Depreciation on factory equipment + Indirect factory…

Q: kysong Company reports the following costs and expenses in May. Factory utilities $14,200…

A: Cost sheet is a method of allocating total cost into different categories. It helps to identify the…

Q: 1. FAN Company has the following data for the year 2021 (in thousand) January 1, 2021 December 31,…

A: The Company has given the details foe the year 2021. Required Prepare Income Statement for the year…

Q: current asset

A: Definition: Current Assets; Assets which are used or sold in the business over the year are known…

Q: Reed Production has provided the following information for the year 2015: Direct Labor $153,000…

Q: 12. The following data are available for Peter Senen Company during the month of July 2020: P 95,000…

A: FACTORY OVERHEADS - Generally, Factory overheads cost is also called manufacturing overhead, which…

Q: Following are certain operating data for Durango Manufacturing Company for January 2016 Materials…

A: COGS %=100-GP %=100-40=60%

Q: Cost of materials purchased

A: (Note: Since you have posted a multi-part question, we will solve the first three parts for you. For…

Q: Gore Company makes products for sporting events. The following data are for the year ended December…

A: Given the following information: Materials inventory, January 1, 2014: $45,000 Materials inventory,…

Q: c. For the month ended January 31, determine Bandera Manufacturing's net income. Bandera…

A: Solution- Calculation of COGS…

Q: Pro-Leather Company is a manufacturer of leather cases for tablets. The following information…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

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
76,800
585,000
Distribution & Customer Service Costs
Insurance on Plant & Equipment
Property Taxes 3
Administrative Wages & Salaries
Advertising Expenses
90,000
1,076,000
57,700
Sales Commission
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: 1/1/202o Purchases 31/12/2020
$750,000 $4,330,000
Raw Materials
$807,000
Indirect Materials
55,000
320,000
71,500
Work in Progress
1,115,400
1,142,600
n/a
n/a
924,000
Finished Goods
1,720,200
Required:
a) Calculate the raw material used by Pro-Leather Company.
(2 marks)
b) Calculate the indirect materials used by Pro-Leather Company
(2 marks)
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.
(3 marks)
(3 marks)
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.
(5 marks)
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.
(62 marks)
g) What is the factory cost per case if Pro-Leather manufactured 19,200 cases for tablets for the year?
(2 marks)
h) How does the format of the income statement for a manufacturing concern differ from the income
(12 marks)
statement of a merchandising entity?
"The only place you will ever find success before work is in the dictionary" uriel salmon
Page 2

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

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 3,952,600 Indirect Factory Labor 1,232,250 Total Depreciation 1 400,000 Total Utilities 2 525,000 Distribution & Customer Service Costs 76,800 Insurance on Plant & Equipment 585,000 Property Taxes 3 90,000 Administrative Wages & Salaries 1,076,000 Advertising Expenses 57,700 Sales Commission 6% of Sales Revenue a) Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and administrative costs. b) Of the total utilities, 75% relates to production and 25% relates to general and administrative costs. c) The property taxes should be shared: 85% production & 15% general & administrative costs. The following additional information is also available: Inventory Data:…
Oriole Company provided the following information from its accounting records for 2019: Expected production 100000 labor hours Actual production 96000 labor hours Budgeted overhead $2100000 Actual overhead $1840000 How much is the overhead application rate if Oriole Company bases it on direct labor hours? $21.00 per hour $19.17 per hour $21.88 per hour $18.40 per hour
Simply Sweets has provided the following relating to the most recent month (August 31, 2020) of operations, for their main product, cookies. Baker's salary 3,000 Finished goods inventory, beginning 1,000 Finished goods inventory, ending 3,000 General & administrative expenses 3,500 Indirect materials 500 Production Supervisor, Salary 4,000 Purchases of raw materials 11,000 Raw materials inventory, ending 2,000 Raw materials inventory, beginning 1,000 Rent on production factory 2,000 Rent, retail store 1,000 Sales 40,000 Utilities on production factory 500 Utilities, retail store 500 Wages, retail staff 3,000 WIP inventory, beginning 2,500 WIP inventory, ending 4,500 Required: Prepare a schedule of cost of goods manufactured in good format Calculate the cost of goods sold Do not give answer in image
Frosting Corp. has provided the following relating to the most recent month (August 31, 2020) of operations, for their main product, cupcakes. Baker's salaries 20,000 Finished goods inventory, beginning Finished goods inventory, ending General & administrative expenses 18,000 20,000 20,000 Indirect materials 17,500 Production supervisor, salary 21,000 Purchases of raw materials 28,000 Raw materials inventory, ending Raw materials inventory, beginning Rent on production factory 19,000 18,000 19,000 Rent, retail store 18,000 Sales 243,000 Utilities on production factory 17,500 Utilities, retail store 17,000 Wages, retail staff WIP inventory, beginning WIP inventory, ending 20,000 19,500 21,500 Required: 2. Prepare the cost of goods sold section of the income statement 3. Prepare an income statement in good format
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 Indirect Factory Labor Total Depreciation $14,275,000 3,952,600 1,232,250 400,000 Total Utilities 2 525,000 Distribution & Customer Service Costs 76,800 585,000 90,000 Insurance on Plant & Equipment Property Taxes 3 Administrative Wages & Salaries 1,076,000 57,700 6% of Sales Revenue Advertising Expenses Sales Commission I 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 $4,330,000 320,000 n/a Raw Materials $750,000 $807,000 Indirect Materials…
Malone Company has the following balances for the current month: Indirect materials used $1320 Direct labor 5469 Sales salaries 11588 Indirect labor 1508 Production manager's salary 10170 Marketing costs 4286 Factory rent Direct materials used What are the total period costs? 11814 2021