2From the following particulars of a manufacturing firm, prepare a statement showing: Materials used in manufacturing OMR 60000 Materials used in primary packing OMR 10000 Materials used in selling the product OMR 1500 Materials used in the factory OMR 750 Administrative expenses OMR 1250 Depreciation on office building OMR 750 Depreciation on factory building OMR1750 Materials used in the office OMR 1250 Wages - production OMR 10000 Wages - factory supervision OMR 2000 Indirect expenses - factory OMR 1000 Selling expenses OMR 3500 Audit charges OMR 250 Bank service charges OMR 100 Freight on materials purchased OMR 5000 Advertising Expenses OMR 1250 Profit OMR 25% on cost of production

2From the following particulars of a manufacturing firm, prepare a statement showing: Materials used in manufacturing OMR 60000 Materials used in primary packing OMR 10000 Materials used in selling the product OMR 1500 Materials used in the factory OMR 750 Administrative expenses OMR 1250 Depreciation on office building OMR 750 Depreciation on factory building OMR1750 Materials used in the office OMR 1250 Wages - production OMR 10000 Wages - factory supervision OMR 2000 Indirect expenses - factory OMR 1000 Selling expenses OMR 3500 Audit charges OMR 250 Bank service charges OMR 100 Freight on materials purchased OMR 5000 Advertising Expenses OMR 1250 Profit OMR 25% on cost of production

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 23DQ: LO.6 Largo Company is an engineering consulting business that uses the accrual method of accounting...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Q 2From the following particulars of a manufacturing firm, prepare a statement showing:

Materials used in manufacturing OMR 60000

Materials used in primary packing OMR 10000

Materials used in selling the product OMR 1500

Materials used in the factory OMR 750

Administrative expenses OMR 1250

Depreciation on office building OMR 750

Depreciation on factory building OMR1750

Materials used in the office OMR 1250

Wages - production OMR 10000

Wages - factory supervision OMR 2000

Indirect expenses - factory OMR 1000

Selling expenses OMR 3500

Audit charges OMR 250

Bank service charges OMR 100

Freight on materials purchased OMR 5000

Advertising Expenses OMR 1250

Profit OMR 25% on cost of production

Calculate :

(a) Prime Cost (b) Works Cost

PLEASE ANSWER D AND E SUBPARTS

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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