Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part 1 Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounting records of the business reflect the following data

image text in transcribed

Part 1 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 $5,675,000 64,000 792,000 560,000 37,000 Depreciation: Plant & Equipment 186,000 Total Utilities 1 481,250 Production Supervisor's Salary 450,000 Hiring of Specialized Manufacturing Equipment 68,000 Insurance on Plant & Equipment 112,000 Delivery Vehicle Drivers' Wages 189,000 Depreciation: Delivery Vehicle 53,850 Property Taxes 2 240,000 Administrative Wages & Salaries 850,750 Advertising Expenses 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 Required: (A) Calculate the raw material & factory supplies used by Shades of the Caribbean. (4 marks) (B) What is the total manufacturing overhead cost incurred by Shades of the Caribbean during the period? (C) Determine the prime cost & conversion cost of the product manufactured. (3 marks) (3 marks) (D) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2018, clearly showing total manufacturing costs & total manufacturing costs to account for.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting in an Economic Context

Authors: Jamie Pratt

8th Edition

9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292

More Books

Students also viewed these Accounting questions

Question

Match the equation with its graph (a-d). C. 7 -2 2 2 b. d. O 7 7 9

Answered: 1 week ago

Question

Solve each equation or inequality. |6x8-4 = 0

Answered: 1 week ago