(C) Determine the prime cost & conversion cost of the product manufactured. Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accountingrecords of the business reflect the following data at June 30, 2018:Inventory1/7/2017 30/6/2018Raw Materials $230,000 $260,000Factory Supplies$35,000$24,000Work in Progress $358,000 $213,000Finished Goods $975,400 $585,000Other information:Sales RevenueFactory Supplies PurchasedDirect Factory LaborRaw Materials PurchasedPlant janitorial serviceDepreciation: Plant & EquipmentTotal Utilities ¹Production Supervisor's SalaryHiring of Specialized Manufacturing EquipmentInsurance on Plant & EquipmentDelivery Vehicle Drivers' WagesDepreciation: Delivery VehicleProperty Taxes ²Administrative Wages & SalariesAdvertising Expenses$5,675,00064,000792,000560,00037,000186,000481,250450,00068,000112,000189,00053,850240,000850,7501% of Sales Revenue¹ Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.2 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs

schedule of cost of goods manufactured and cost of goods sold or the year ended June 30, 2018.…

Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounting records of the business reflect the following data at June 30, 2018: Inventory 1/7/2017 30/6/2018 Raw Materials $230,000 $260,000 Factory Supplies $35,000 $24,000 Work in Progress $358,000 $213,000 Finished Goods $975,400 $585,000 Other information: Sales Revenue Factory Supplies Purchased Direct Factory Labor Raw Materials Purchased Plant janitorial service Depreciation: Plant & Equipment Total Utilities 1 Production Supervisor's Salary Hiring of Specialized Manufacturing Equipment Insurance on Plant & Equipment Delivery Vehicle Drivers' Wages Depreciation: Delivery Vehicle Property Taxes ² Administrative Wages & Salaries Advertising Expenses $5,675,000 64,000 792,000 560,000 37,000 186,000 481,250 450,000 68,000 112,000 189,000 53,850 240,000 850,750 1% of Sales Revenue ¹ Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs. 2 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs

Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounting records of the business reflect the following data at June 30, 2018: Inventory 1/7/2017 30/6/2018 Raw Materials $230,000 $260,000 Factory Supplies $35,000 $24,000 Work in Progress $358,000 $213,000 Finished Goods $975,400 $585,000 Other information: Sales Revenue Factory Supplies Purchased Direct Factory Labor Raw Materials Purchased Plant janitorial service Depreciation: Plant & Equipment Total Utilities 1 Production Supervisor's Salary Hiring of Specialized Manufacturing Equipment Insurance on Plant & Equipment Delivery Vehicle Drivers' Wages Depreciation: Delivery Vehicle Property Taxes ² Administrative Wages & Salaries Advertising Expenses $5,675,000 64,000 792,000 560,000 37,000 186,000 481,250 450,000 68,000 112,000 189,000 53,850 240,000 850,750 1% of Sales Revenue ¹ Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs. 2 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 84PSA

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Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounting records of the business reflect the following data at June 30, 2018:Inventory 1/7/2017 30/6/2018Raw Materials $230,000 $260,000Factory Supplies $35,000 $24,000Work in Progress $358,000 $213,000Finished Goods $975,400 $585,000Other information:Sales Revenue $5,675,000Factory Supplies Purchased 64,000Direct Factory Labor 792,000Raw Materials Purchased 560,000Plant janitorial service 37,000Depreciation: Plant & Equipment 186,000Total Utilities 1 481,250Production Supervisor’s Salary 450,000Hiring of Specialized Manufacturing Equipment 68,000Insurance on Plant & Equipment 112,000Delivery Vehicle Drivers’ Wages 189,000Depreciation: Delivery Vehicle 53,850Property Taxes 2 240,000Administrative Wages & Salaries 850,750Advertising Expenses 1% of Sales Revenue1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.2 The property taxes…
hades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounting records of the business reflect the following data at June 30, 2018:Inventory 1/7/2017 30/6/2018Raw Materials $230,000 $260,000Factory Supplies $35,000 $24,000Work in Progress $358,000 $213,000Finished Goods $975,400 $585,000Other information:Sales Revenue $5,675,000Factory Supplies Purchased 64,000Direct Factory Labor 792,000Raw Materials Purchased 560,000Plant janitorial service 37,000Depreciation: Plant & Equipment 186,000Total Utilities 1 481,250Production Supervisor’s Salary 450,000Hiring of Specialized Manufacturing Equipment 68,000Insurance on Plant & Equipment 112,000Delivery Vehicle Drivers’ Wages 189,000Depreciation: Delivery Vehicle 53,850Property Taxes 2 240,000Administrative Wages & Salaries 850,750Advertising Expenses 1% of Sales Revenue1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.2 The property taxes…
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Part 1Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accountingrecords of the business reflect the following data at June 30, 2018:Inventory 1/7/2017 30/6/2018Raw Materials $230,000 $260,000Factory Supplies $35,000 $24,000Work in Progress $358,000 $213,000Finished Goods $975,400 $585,000 Other information:Sales Revenue $5,675,000Factory Supplies Purchased 64,000Direct Factory Labor 792,000Raw Materials Purchased 560,000Plant janitorial service 37,000Depreciation: Plant & Equipment 186,000Total Utilities 1 481,250Production Supervisor’s Salary 450,000Hiring of Specialized Manufacturing Equipment 68,000Insurance on Plant & Equipment 112,000Delivery Vehicle Drivers’ Wages 189,000Depreciation: Delivery Vehicle 53,850Property Taxes 2 240,000Administrative Wages & Salaries 850,750Advertising Expenses 1% of Sales Revenue1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative…
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