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 1 400,000

Total Utilities 2 525,000

Distribution & Customer Service Costs 76,800

Insurance on Plant & Equipment 585,000

Property Taxes 3 90,000

Administrative Wages & Salaries 1,076,000

Advertising Expenses 57,700

Sales Commission 6% of Sales Revenue

1Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and

administrative costs.

2 Of the total utilities, 75% relates to production and 25% relates to general and administrative

costs.

3 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

Required:

a) Calculate the raw material used by Pro-Leather Company.

b) Calculate the indirect materials used by Pro-Leather Company

c) What is the total manufacturing overhead cost incurred by Pro-Leather Company during the

period?

d) Determine the prime cost & conversion cost of the cases manufactured.

e) schedule of cost of goods manufactured for the year ended December 31, 2020, clearly

showing total manufacturing cost & total manufacturing costs to account for.

f) income statement for Pro-Leather Company for the year ended December 31, 2020. List

the non-manufacturing overheads in order of size starting with the largest.

g) What is the factory cost per case if Pro-Leather manufactured 19,200 cases for tablets for the year?

h) How does the format of the income statement for a manufacturing concern differ from the income

statement of a merchandising entity?