Q.1 Following information relates to the Snowball Manufacturing Company: Direct materials……………………………………………. $25,000 Indirect materials………………………………………….. 5,000 Direct labor………………………………………………… 30,000 Indirect labor……………………………………………….. 4,500 Factory overhead (excluding indirect materials and indirect labor) 15,000 Plant cost 500,000 Required: Compute the prime costs, conversion costs, and product costs?
Q.1 Following information relates to the Snowball Manufacturing Company:
Direct materials……………………………………………. $25,000
Indirect materials………………………………………….. 5,000
Direct labor………………………………………………… 30,000
Indirect labor……………………………………………….. 4,500
Factory
Plant cost 500,000
Required: Compute the prime costs, conversion costs, and product costs?
Q.2. Allure Company produces women’s clothing. During 2004, the company incurred the following costs:
|
Factory rent |
265,000 |
|
Direct labor |
325,000 |
|
Utilities-Factory |
88,000 |
|
Purchases of direct materials |
465,000 |
|
Indirect materials |
70,000 |
|
Indirect labors |
35,000 |
Inventories for the year were as follows:
|
|
January 1 |
December 31 |
|
Direct materials |
90,000 |
50,000 |
|
Work in process |
40,000 |
85,000 |
|
Finished goods |
115,000 |
95,000 |
Required
- Prepare a statement of cost of goods manufactured; and
- Calculate cost of goods sold?
Q.3.
|
Raw material (1-1-03) Rs 12,500 Work-in-Process (1-1-03) 6,300 Finished Goods (1-1-03) 12,500 Sales 678,600 Sales return 15,000 Purchases of raw material 245,000 Administrative expense 70,000 Marketing expense 55,000 Indirect material 8,000 Indirect labor 4,500 |
Raw material (31-12-03) Rs 32,000 Work-in-Process (31-12-03) 16,500 Finished Goods (31-12-03) 25,000 Direct labor 125,000 Other factory overhead 17,600 Repair and maintenance 10,000 Insurance-factory 12,000 |
Required:
- Statement of cost of goods manufactured;
- Statement of cost of goods sold; and
- Income Statement?
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