All School Logos & More (ASLM) design and manufacture school uniform crests. After production, the crests are placed into individual plastic cases, before being transferred into Finished Goods. The accounting records of the business for the quarter to December 31, 2021, for the manufacturing of uniform crests for Hill Point High School are given below. Inventory 1/10/2021 31/12/2021 Raw Materials $72,000
All School Logos & More (ASLM) design and manufacture school uniform crests. After production,
the crests are placed into individual plastic cases, before being transferred into Finished Goods. The
accounting records of the business for the quarter to December 31, 2021, for the manufacturing of uniform
crests for Hill Point High School are given below.
Inventory 1/10/2021 31/12/2021
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 Cleaner’s Wages 4,500
Factory Supplies Used 23,500
Total Utilities1 118,750
Plant Supervisor’s Salary 180,000
Design Costs (School Logo) 4,300
Packaging Material Cost 35,000
Total Insurance2 60,000
Delivery Vehicle Drivers’ Wages 41,250
Depreciation: Delivery Vehicle 7,250
Property Taxes3 105,000
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, 66⅔% relates to the manufacturing facilities & 33⅓% 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 All School Logos & More.
b) What is the total
c.Determine the prime cost & conversion cost of the School crests produced.
d) Prepare a schedule of cost of goods manufactured for the quarter ended December 31, 2021, clearly
showing total manufacturing cost & total manufacturing costs to account for.
e.Prepare an income statement for personal All School Logos & More for the quarter ended December
31, 2021. List the non-manufacturing overheads in order of size starting with the largest.
f.What is the selling price per crest if All School Logos & More manufactured 2,800 crests for Hill Point
High School for the quarter under review and uses a mark-up of 50% on cost?
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