Topics: Cost Classification & Inventory Valuation Note: show ALL supporting workings where necessary and state any assumption(s) made QUESTION #1 Creative Industries Ltd(CIL) designs and manufactures serving trays for the tourist industry. Before the trays are stained and polished, a specialized piece of equipment is used to engrave a logoon each tray. After production, the trays are placed into individual plastic cases, before being transferred into Finished Goods. The accounting records of the business for the quarter to December 31,2024, for the manufacturing of trays for the Medallion Hotel Chain are given below. Inventory11?20243112?2024 Raw Materials $72,000 $65,000 Work in Progress $138,875 $129,125 Finished Goods $149,500 $141,700 Other information: Sales Revenue $1,694,950 Factory Labour 239,700 Raw Materials Purchased 235,000 Office Cleaners Wages 4,500 Factory Supplies Used 23,500 Depreciation: Factory Plant & Equipment 32,000 Total Utilities 1118,750 Plant Supervisors Salary 180,000 Hireage cost of specialized logo equipment 4,300 Packaging Material Cost 35,000 Total Insurance 260,000 Delivery Vehicle Drivers Wages 41,250 Depreciation: Delivery Vehicle 7,250 Property Taxes 3105,000 Administrative Wages & Salaries 123,750 Sales Commission 2%of Net Profit before Commission 1.Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs. 2.Of the total insurance, 6623% relates to the manufacturing facilities & 3313% relates to the office area 3. The property taxes should be shared: 75% factory facilities & 25% general & administrative costs Required: a. Calculate the raw material used by Creative Industries Ltdb. What is the total factory overhead costs incurred by Creative Industries Ltd during the period? c. Determine the prime cost & conversion cost of the trays produced. d. Determine the total manufacturing cost & total manufacturing costs to account for. e. Calculate the cost of the trays manufactured during the year. f. What was the cost of the trays sold during the period? g. Determine the total non-production costs associated with the manufacturing of the trays h. What is the selling price per tray if Creative Industries Ltd manufactured 700 trays for the Medallion Hotel Chain for the quarter under review and uses a mark-upof50%oncost?i. Explain the difference between product costs and period costs. How does the product cost of a manufacturer differ from the product cost of a merchandiser?