Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

where ahould packaging cases cost go? in the income statement or Factory overhead? or both. explain why Personal Protective Gears & More (PPGM) design and

where ahould packaging cases cost go?
in the income statement or Factory overhead? or both.
explain why
image text in transcribed
Personal Protective Gears & More (PPGM) design and manufacture 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 Mount Marlie 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 481,250 Production Supervisor's Salary 450,000 Design Costs (School Logo) 26,000 Packaging Cases Cost 42,000 Total Insurance 168,000 Delivery Vehicle Drivers' Wages 181,500 Depreciation: Delivery Vehicle 53,290 Property Taxes 240,000 Administrative Wages & Salaries 801,250 Advertising & Selling Expenses 1% of Sales Revenue Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs. of the total insurance, 66%% relates to the Factory Plant & Equipment & 33% relates to general & administrative costs. * The property taxes should be shared: 75% manufacturing & 25% general & administrative costs Required: a) Calculate the raw material tised by Personal Protective Gears & More b) Calculate the factory supplies used by Personal Protective Gears & More. c) What is the total factory overhead costs incurred by Personal Protective Gears & More during the period? d) Determine the prime cost & conversion cost of the masks manufactured. e) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2021, clearly showing total manufacturing cost & total manufacturing costs to account for Prepare an income statement for personal Protective Gears & More for the year ended June 30, 2021. List the non-manufacturing overheads in order of size starting with the largest 8) What is the selling price per mask if Personal Protective Gears manufactured 1,850 masks for the period under review and uses a mark-up of 25% on cost? How does the format of the income statement for a manufacturing concern differ from unamcome statement of a merchandising entity

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

Accounting Ethics A Practical Approach

Authors: Howard J Levine

1st Edition

0692112898, 9780692112892

More Books

Students also viewed these Accounting questions

Question

Describe sources of ethical guidance.

Answered: 1 week ago