Question
Bubba Manufacturing Company provided the following information for the fiscal year to June 30, 2020: Inventories 01/07/2019 30/06/2020 Direct Materials $72,000 $65,000 Work-in-Process $107,000 $128,000
Bubba Manufacturing Company provided the following information for the fiscal year to June 30, 2020:
Inventories 01/07/2019 30/06/2020
Direct Materials $72,000 $65,000
Work-in-Process $107,000 $128,000
Finished Goods $149,500 $141,700
Other Information:
Office cleaners wages | 4,500 |
Sales Revenue | 1,031,000 |
Raw materials purchased | 235,000 |
Factory wages | 239,700 |
Indirect materials | 23,500 |
Delivery truck drivers wages | 15,400 |
Indirect labor | 9,500 |
Depreciation on factory plant & equipment | 32,000 |
Insurance | 1 60,000 |
Depreciation on delivery truck | 7,250 |
Utilities | 2 118,750 |
Administrative salaries | 41,250 |
Special Design Costs | 5,000 |
Selling expenses | 9,000 |
Sales Commission | 2% of gross profit |
- Of the total insurance, 66% relates to the factory facilities & 33% relates to general & administrative costs.
2. Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to the office area.
Requirements:
a) What was the amount of direct materials used in production?
b) What was the amount of manufacturing overhead costs?
c) What is the prime cost and conversion cost of the product?
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