Gopaul Electronics designs and manufactures specialized switches for the telecommunications industry. The accounting records of the...
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Gopaul Electronics designs and manufactures specialized switches for the telecommunications industry. The accounting records of the business reflect the following data at December 31, 2023: Inventory Raw Materials 1/1/2023 $260,000 $230,000 31/12/2023 Work In Progress Finished Goods $333,800 $218,800 $1,075,200 $615,000 Other information: Sales Revenue Factory supplies Direct Factory Labor Special Design Cost $5,765,000 45,000 735,000 15,000 Raw Materials Purchased 540,000 Plant janitorial service 52,000 Depreciation: Plant & Equipment 165,000 Plant Utilities 385,000 Plant supervisor's salary 480,000 Property Taxes 1 300,000 R&D for Graphic Designs Office Utilities Insurance on Plant & Equipment Delivery truck driver's wages Depreciation: Delivery truck 70,500 165,000 120,000 125,000 52,000 Administrative Wages & Salaries Sales Commission 850,150 97,650 1 The property taxes should be shared: 60% manufacturing & 40% general & administrative costs. Required: a) Calculate the raw material used by Gopaul Electronics. (2 marks) b) What is the total factory overhead cost incurred by Gopaul Electronics during the period? (3 marks) c) Determine the prime cost & conversion cost of the product manufactured. d) Calculate the cost of goods manufactured for the year by Gopaul Electronics (3 marks) (4 marks) e) Prepare an income statement for Gopaul Electronics for the year ended December 31, 2023, clearly showing the calculation of Cost of Goods Sold. List the non-production overheads in order of size starting with the largest. (6 marks) f) What is the selling price per switch if Gopaul Electronics manufactured 1,500 switches for the period under review and uses a mark-up of 33% on cost? (2 marks) Gopaul Electronics designs and manufactures specialized switches for the telecommunications industry. The accounting records of the business reflect the following data at December 31, 2023: Inventory Raw Materials 1/1/2023 $260,000 $230,000 31/12/2023 Work In Progress Finished Goods $333,800 $218,800 $1,075,200 $615,000 Other information: Sales Revenue Factory supplies Direct Factory Labor Special Design Cost $5,765,000 45,000 735,000 15,000 Raw Materials Purchased 540,000 Plant janitorial service 52,000 Depreciation: Plant & Equipment 165,000 Plant Utilities 385,000 Plant supervisor's salary 480,000 Property Taxes 1 300,000 R&D for Graphic Designs Office Utilities Insurance on Plant & Equipment Delivery truck driver's wages Depreciation: Delivery truck 70,500 165,000 120,000 125,000 52,000 Administrative Wages & Salaries Sales Commission 850,150 97,650 1 The property taxes should be shared: 60% manufacturing & 40% general & administrative costs. Required: a) Calculate the raw material used by Gopaul Electronics. (2 marks) b) What is the total factory overhead cost incurred by Gopaul Electronics during the period? (3 marks) c) Determine the prime cost & conversion cost of the product manufactured. d) Calculate the cost of goods manufactured for the year by Gopaul Electronics (3 marks) (4 marks) e) Prepare an income statement for Gopaul Electronics for the year ended December 31, 2023, clearly showing the calculation of Cost of Goods Sold. List the non-production overheads in order of size starting with the largest. (6 marks) f) What is the selling price per switch if Gopaul Electronics manufactured 1,500 switches for the period under review and uses a mark-up of 33% on cost? (2 marks)
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Related Book For
Horngrens Accounting Volume 1
ISBN: 9780136889373
12th Canadian Edition
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura
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