Question $1$

$(25$ marks$)$

Leather Authentic Company is a manufacturer of leather cases for tablets. The following information pertains to

operations during the $2023$ calendar year.

${?}^1$ Of 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:

Required:

a$)$ Calculate the raw material used by Leather Authentic Company.

$(2$ marks$)$

b$)$ Calculate the indirect materials used by Leather Authentic Company

$(2$ marks$)$

c$)$ What is the total manufacturing overhead cost incurred by Leather Authentic Company during the period?

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

e$)$ Prepare a schedule of cost of goods manufactured for the year ended December $31,2023,$ clearly showing

total manufacturing cost & total manufacturing costs to account for.

$(5$ marks$)$

f$)$ Prepare an income statement for Leather Authentic Company for the year ended December $31,2023.$ List

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

$(\frac{61}{2}$ marks$)$

g$)$ What is the selling price per case if Leather Authentic manufactured $9,600$ cases for tablets for the year

and uses a mark$-$up of $50\%$ on cost$?$

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

of a merchandising entity?