What is the total manufacturing overhead cost incurred by Pro-Leather Company during the period? Determine the prime cost & conversion cost of the cases manufactured.
What is the total manufacturing overhead cost incurred by Pro-Leather Company during the period? Determine the prime cost & conversion cost of the cases manufactured.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter10: Accounting Systems For Manufacturing Operations
Section: Chapter Questions
Problem 10.3E: Classifying costs as factory overhead Which of the following items are properly classified as part...
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What is the total
Determine the prime cost & conversion cost of the cases manufactured.
![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
$14,275.000
3.952,600
Indirect Factory Labor
Total Depreciation'
Total Utilities 2
Distribution & Customer Service Costs
1,232,250
400,000
525,000
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.
* 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
$750,000 $4.330,000
320,000
n/a
n/a
Raw Materials
$807,000
Indirect Materials
55,000
Work in Progress
Finished Goods
1,115.400
1,142,600
71,500
924.000
1,720,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff99f9c88-e053-40d3-87de-476983686de2%2F49cac554-deaa-430f-8709-c3a9cec7d18c%2Fqkl2f4_processed.png&w=3840&q=75)
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
Direct Factory Labor
$14,275.000
3.952,600
Indirect Factory Labor
Total Depreciation'
Total Utilities 2
Distribution & Customer Service Costs
1,232,250
400,000
525,000
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.
* 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
$750,000 $4.330,000
320,000
n/a
n/a
Raw Materials
$807,000
Indirect Materials
55,000
Work in Progress
Finished Goods
1,115.400
1,142,600
71,500
924.000
1,720,200
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