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

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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 Labor 3,952,600Indirect Factory Labor 1,232,250Total Depreciation 1 400,000Total Utilities 2 525,000Distribution & Customer Service Costs 76,800Insurance on Plant & Equipment 585,000Property Taxes 3 90,000Administrative Wages & Salaries 1,076,000Advertising Expenses 57,700Sales Commission 6% 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 costsThe following additional information is also available:Inventory Data: 1/1/2020 Purchases 31/12/2020Raw Materials $750,000 $4,330,000 $807,000Indirect Materials 55,000…
Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains to operations during the 2020 calendar year.Sales Revenue $14,275,000Direct Factory Labor 3,952,600Indirect Factory Labor 1,232,250Total Depreciation 1 400,000Total Utilities 2 525,000Distribution & Customer Service Costs 76,800Insurance on Plant & Equipment 585,000Property Taxes 3 90,000Administrative Wages & Salaries 1,076,000Advertising Expenses 57,700Sales Commission 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.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 31/12/2020Raw Materials…
From the following information prepare a cost of Good manufactured statement for 'Phonix Group.' manufacturing company: Inventories June 1,2019 June 30,2019 Raw material Tk.58,000 Tk. 52,000 Work in process 48,500 44,000 Sales commission Tk. 6,230 Purchase discount 3,210 Net sales 17,20,050 Depreciation-Factory Machinery 1,60,050 Factory Insurance 50,713 Other factory Expenses 16,020 Sales Salaries 80,030 Freight In 12,010 General factory expense 11,030 Direct factory labor 7,10,200 Material purchases 4,10,810 Advertising expense 12,600 supplies 8,000 Plant maintenance 2,550
АСTIVITY: Problem 1: Cost of Goods Manufactured (page 10-11) In addition to the year-end statement of financial position and income statement, the management of Esterlina Gevera Company required the controller to prepare the statement of cost of goods manufactured. During 2019, P361,920 of Raw materials were purchased. Operating cost data and inventory account balances for 2019 follows: Direct labor (10,430 hours at P9.50 per hour) Plant Supervision Indirect labor (20,280 hours at P6.25 per hour) Factory Insurance Factory Utilities Depreciation-Factory Building Depreciation-Factory Utilities Manufacturing Supplies Repairs and Maintenance Selling and Administrative Expenses Raw Materials Inventory, Jan. 1, 2019 Work in Process Inventory, Jan. 1, 2019 P 99,085 42,500 126,750 8,100 29,220 46,200 62,800 9,460 14,980 76,480 26,490 101,640 148,290 24,910 100,400 141,100 Finished Goods Inventory, Jan. 1, 2019 Raw Materials Inventory, Dec. 31, 2019 Work in Process Inventory, Dec. 31, 2019…
Bubba Manufacturing Company provided the following information for the fiscal year toJune 30, 2020:Inventories 01/07/2019 30/06/2020Direct MaterialsWork-in-ProcessFinished Goods$72,000107,000149,500$65,000128,000141,700Other information:Office cleaner’s wages 4,500Sales Revenue 1,031,000Raw materials purchased 235,000Factory wages 239,700Indirect materials 23,500Delivery truck driver’s wages 15,400Indirect labor 9,500Depreciation on factory plant & equipment 32,000Insurance 1 60,000Depreciation on delivery truck 7,250Utilities 2 118,750Administrative salaries 41,250Special Design Costs 5,000Selling expenses 9,000Sales Commission 2% of gross profit1 Of the total insurance, 66⅔% relates to the factory facilities & 33⅓% relates to general& administrative costs.2 Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to theoffice area.Requirements:a) What was the amount of direct materials used in production?b) What was the amount of manufacturing…
Octie Company reports the following costs and expenses in January 2020. Required: From the information given, determine the total amount of Manufacturing overhead Product costs Period costs Advertising P 15,000 Factory utilities P 10,800 Depreciation-Factory Equipment 14,500 Indirect labor 55,200 Depreciation-Delivery Truck 10,800 Office supplies used 11,100 Direct labor 82,100 Property taxes-Factory 5,500 Direct materials used 135,600 Repairs-Office Equipment 4,200 Factory manager’s salary 25,000 Sales commissions 32,000 Factory repairs 13,500 Sales salaries 73,400
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…
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 Distribution & Customer Service Costs 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 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: 1/1/2020 Purchases 31/12/2020 Raw Materials $750,000 $4,330,000 $807,000 Indirect Materials 55,000…
(b) Prepare an income statement for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Axteks Corporation Income Statement : eTextbook and Media Save for Later +A Attempts: 0 of 3 used Submit Answer
Practice: The following data are taken from the accounting records of Gregory Mfg. Co.: 2019 2018 Ending inventories: Materials $ 100,000 $80,000 Work in Process $64,000 $56,000 Finished Goods $140,000 $170,000 Manufacturing goods: Direct materials used $657,000 Direct labor costs charged to production $270,000 Manufacturing Overhead $378,000 Show All Calculations: Outline a schedule of cost of goods manufactured for 2019 in good form The company generally prices products adding 20% to the cost of goods sold. Determine the total revenue the company would have generated in 2019.
The following information pertaining to X Co.'s manufacturing operations: Inventories March 1, 2021 March 31, 2021 Direct Materials P36,000 P30,000 Work in process 18,000 12,000 Finished Goods 54,000 72,000 Additional information for the month of March 2021: Direct materials purchased P84,000 Direct manufacturing labor payroll 60,000 Direct manufacturing labor rate per hour 7.50 Factory overhead rate per direct labor hour 10.00
Larkspur Corporation has the following cost records for June 2025. Indirect factory labor Direct materials used Work in process, 6/1/25 Work in process, 6/30/25 Finished goods, 6/1/25 Finished goods, 6/30/25 (a) O $3,700 16,400 2,460 3,080 Factory utilities Depreciation, factory equipment Your answer is partially correct. Direct labor Maintenance, factory equipment 4,100 Indirect materials used 6,150 Factory manager's salary Prepare a cost of goods manufactured schedule for June 2025. $310 1,130 32,800 1,440 1,850 2,460