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 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 31/12/2020 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 Determine the prime cost & conversion cost of the cases manufactured. 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.
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
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
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 |
31/12/2020 |
|
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 |
|
|
|
|
|
Determine the prime cost & conversion cost of the cases manufactured.
Prepare a schedule of cost of goods manufactured for the year ended December 31, 2020,clearly showing total manufacturing cost & total
Prepare an income statement for Pro-Leather Company for the year ended December 31, 2020. List the non-manufacturing
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