Personal Protective Gears & More (PPGM) design and manufacture masks for students. After production, the masks are placed into individual cases, before being transferred into Finished Goods. The accounting records of the business reflect the following data at June 30, 2021, for the manufacturing of masks for Mount Marlie High School. Inventory 1/7/2020 30/6/2021 Raw Materials $230,000 $260,000 Factory Supplies $35,000 $24,000 Work in Progress $348,300 $203,300 Finished Goods $632,900 $485,000 Other information: Sales Revenue $5,731,000 Factory Supplies Purchased 64,000 Direct Factory Labor 792,000 Raw Materials Purchased 560,000 Plant janitorial service 37,000 Depreciation: Plant & Equipment 186,000 Total Utilities 1 481,250 Production Supervisor’s Salary 450,000 Design Costs (School Logo) 26,000 Packaging Cases Cost 42,000 Total Insurance 2 168,000 Delivery Vehicle Drivers’ Wages 181,500 Depreciation: Delivery Vehicle 53,290 Property Taxes 3 240,000 Administrative Wages & Salaries 801,250 Advertising & Selling Expenses 1% of Sales Revenue 1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs. 2 Of the total insurance, 66⅔% relates to the Factory Plant & Equipment & 33⅓% relates to general & administrative costs. 3 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs Required: d) Determine the prime cost & conversion cost of the masks manufactured. e) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2021, clearly showing total manufacturing cost & total manufacturing costs to account for. f) Prepare an income statement for personal Protective Gears & More for the year ended June 30, 2021. List the non-manufacturing overheads in order of size starting with the largest.
Personal Protective Gears & More (PPGM) design and manufacture masks for students. After
production, the masks are placed into individual cases, before being transferred into Finished Goods. The
accounting records of the business reflect the following data at June 30, 2021, for the manufacturing of
masks for Mount Marlie High School.
Inventory 1/7/2020 30/6/2021
Raw Materials $230,000 $260,000
Factory Supplies $35,000 $24,000
Work in Progress $348,300 $203,300
Finished Goods $632,900 $485,000
Other information:
Sales Revenue $5,731,000
Factory Supplies Purchased 64,000
Direct Factory Labor 792,000
Raw Materials Purchased 560,000
Plant janitorial service 37,000
Total Utilities 1 481,250
Production Supervisor’s Salary 450,000
Design Costs (School Logo) 26,000
Packaging Cases Cost 42,000
Total Insurance 2 168,000
Delivery Vehicle Drivers’ Wages 181,500
Depreciation: Delivery Vehicle 53,290
Property Taxes 3 240,000
Administrative Wages & Salaries 801,250
Advertising & Selling Expenses 1% of Sales Revenue
1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.
2 Of the total insurance, 66⅔% relates to the Factory Plant & Equipment & 33⅓% relates to general &
administrative costs.
3 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs
Required:
d) Determine the prime cost & conversion cost of the masks manufactured.
e) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2021, clearly showing total manufacturing cost & total
f) Prepare an income statement for personal Protective Gears & More for the year ended June 30, 2021. List the non-manufacturing
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