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: 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: 1. Calculate the raw material used by Pro-Leather Company. 2. Calculate the indirect materials used by Pro-Leather Company. 3. 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 Labor |
3,952,600 |
Indirect Factory Labor |
1,232,250 |
Total |
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: |
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:
1. Calculate the raw material used by Pro-Leather Company.
2. Calculate the indirect materials used by Pro-Leather Company.
3. What is the total
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