Required: a) Calculate the raw material used 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.  f) 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.  g) 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?  h) How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising entity?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required:
a) Calculate the raw material used 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. 
f) 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. 
g) 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? 
h) How does the format of the income statement for a manufacturing concern differ from the income
statement of a merchandising entity? 

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
Work in Progress $348,300
Finished Goods
$35,000
$24,000
$203.300
$485,000
$632,900
Other information:
Sales Revenue
Factory Supplies Purchased
Direct Factory Labor
Raw Materials Purchased
Plant janitorial service
Depreciation: Plant & Equipment
$5,731,000
64,000
792,000
560,000
37,000
186,000
Total Utilities '
481,250
450,000
26,000
Production Supervisor's Salary
Design Costs (School Logo)
Packaging Cases Cost
Total Insurance 2
Delivery Vehicle Drivers’ Wages
Depreciation: Delivery Vehicle
Property Taxes 3
Administrative Wages & Salaries
| Advertising & Selling Expenses
42,000
168,000
181,500
53,290
240,000
801,250
1% of Sales Revenue
"Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.
2 Of the total insurance, 66%% relates to the Factory Plant & Equipment & 33%% relates to general &
administrative costs.
3 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs
Transcribed Image Text: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 Work in Progress $348,300 Finished Goods $35,000 $24,000 $203.300 $485,000 $632,900 Other information: Sales Revenue Factory Supplies Purchased Direct Factory Labor Raw Materials Purchased Plant janitorial service Depreciation: Plant & Equipment $5,731,000 64,000 792,000 560,000 37,000 186,000 Total Utilities ' 481,250 450,000 26,000 Production Supervisor's Salary Design Costs (School Logo) Packaging Cases Cost Total Insurance 2 Delivery Vehicle Drivers’ Wages Depreciation: Delivery Vehicle Property Taxes 3 Administrative Wages & Salaries | Advertising & Selling Expenses 42,000 168,000 181,500 53,290 240,000 801,250 1% of Sales Revenue "Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs. 2 Of the total insurance, 66%% relates to the Factory Plant & Equipment & 33%% relates to general & administrative costs. 3 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs
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Follow-up Question

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. 

Solution
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Follow-up Question

Determine the prime cost & conversion cost of the masks manufactured. 

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Follow-up Question

g) 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?

Solution
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