Within the costing system of Asempa manufacturing company the following types of expense are incurred.                                                                                                  GHȼ Cost of oils used to lubricate production machinery             20,000 Motor vehicle licences for lorries                                           50,000 Depreciation of factory plant and equipment                        40,000 Cost of chemicals used in the laboratory                               10,000 Commission paid to sales representatives                              25,000 Salary of the secretary to the finance director                        22,000 Trade discount given to customers                                         12,000 Holiday pay of machine operatives                                         32,000 Salary of security guard in raw material warehouse                15,000 Fees to advertising agency                                                       8,000 Rent of finished goods warehouse                                           6,000 Salary of scientist in laboratory                                                5,000 Insurance of the company's premises                                     16,000 Salary of supervisor working in the factory                              7,000 Cost of typewriter ribbons in the general office                      14,000 Protective clothing for machine operatives                             36,000 Required Calculate the amount of expenses incurred under the correct cost classification according to function. Each of expenses should appear only once in your answer.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 1E: Kennedy Appliance Inc.s Machining Department incurred 450,000 of factory overhead cost in producing...
icon
Related questions
icon
Concept explainers
Topic Video
Question

Within the costing system of Asempa manufacturing company the following types of expense are incurred.
                                                                                                 GHȼ
Cost of oils used to lubricate production machinery             20,000
Motor vehicle licences for lorries                                           50,000
Depreciation of factory plant and equipment                        40,000
Cost of chemicals used in the laboratory                               10,000
Commission paid to sales representatives                              25,000
Salary of the secretary to the finance director                        22,000
Trade discount given to customers                                         12,000
Holiday pay of machine operatives                                         32,000
Salary of security guard in raw material warehouse                15,000
Fees to advertising agency                                                       8,000
Rent of finished goods warehouse                                           6,000
Salary of scientist in laboratory                                                5,000
Insurance of the company's premises                                     16,000
Salary of supervisor working in the factory                              7,000
Cost of typewriter ribbons in the general office                      14,000
Protective clothing for machine operatives                             36,000

Required

Calculate the amount of expenses incurred under the correct cost classification according to function. Each of expenses should appear only once in your answer.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning