Calculate the total cost of direct materials used in production? 2. Calculate the cost of goods manufactured? 3. Calculate the unit manufacturing cost?
Goroka Factory provided the following information for the last calendar year,
Beginning inventory:
Direct materials K50,800
Work in process K58,000
Ending inventories:
Direct materials K21,000
Work in process K23,500
During the year, direct materials purchased amounted to K150,000, direct labour cost was K200,000 and
Required:
1. Calculate the total cost of direct materials used in production?
2. Calculate the cost of goods manufactured?
3. Calculate the unit
4. Of the unit manufacturing cost calculated in requirement 3, assume K1.50 is direct materials and K3.24 is overhead. What is the prime cost per unit?
5. What is the conversion cost per unit? Using the information on requirement 4.
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