Required:1) Calculate the raw material used by Pro-Leather Company.2) Calculate the indirect materials used by Pro-Leather Company3) What is the total manufacturing overhead cost incurred by Pro-Leather Company during the period?4) Determine the prime cost & conversion cost of the cases manufactured.5) 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.6) 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.7) What is the factory cost per case if Pro-Leather manufactured 19,200 cases for tablets for the year?8) How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising entity?thank you very much ll bmobile6:44 PMO 177%Question:Pro-Leather Company is a manufacturer of leather cases for tablets. Thefollowing information pertains to operations during the 2020 calendar year.Sales Revenue$14,275,000Direct Factory Labor3,952,600Indirect Factory Labor1,232,250Total Depreciation400,000Total Utilities525,000Distribution & Customer Service Costs76,800Insurance on Plant & Equipment585,000Property Taxes90,000Administrative Wages & Salaries1,076,000Advertising Expenses57,700Sales Commission6% of Sales Revenue1) Of the total depreciation, 80% relates to factory plant & equipment and20% relates to general and administrative costs2) Of the total utilities, 75% relates to production and 25% relates to generaland administrative costs.3) The property taxes should be shared: 85% production & 15% general &administrative costsThe following additional information is also available:Inventory Data:1/1/2020Purchases31/12/2020Raw Materials$750,000$4,330,000$807,000Indirect Materials55,000320,00071,500Work in Progress1,115,400n/a924,000Finished Goods1,142,600n/a1,720,200

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Answered: Required: 1) Calculate the raw…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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?

4) Determine the prime cost & conversion cost of the cases manufactured.

5) 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.

6) 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.

7) What is the factory cost per case if Pro-Leather manufactured 19,200 cases for tablets for the year?

8) How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising entity?

thank you very much

ll bmobile
6:44 PM
O 177%
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
3,952,600
Indirect Factory Labor
1,232,250
Total Depreciation
400,000
Total Utilities
525,000
Distribution & Customer Service Costs
76,800
Insurance on Plant & Equipment
585,000
Property Taxes
90,000
Administrative Wages & Salaries
1,076,000
Advertising Expenses
57,700
Sales Commission
6% of Sales Revenue
1) 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
1,115,400
n/a
924,000
Finished Goods
1,142,600
n/a
1,720,200

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