Regional Safety Supplies (RSS) designs and manufactures 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 Sugar Hill 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
Regional Safety Supplies (RSS) designs and manufactures 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
Sugar Hill 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, 662⁄3% relates to the Factory Plant & Equipment & 331⁄3% relates to general &
administrative costs.
3 The property taxes should be shared: 75% manufacturing & 25% general & admin75% manufactring & 25% general administrative cost.
(F) What is the selling price per mask if Regional Safety Supplies manufactured 1,850 masks for the
period under review and uses a mark-up of 25% on cost?
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