MGT101
(i)Purchases:
Opening stock of raw material =13,000
Material available for use =62,000
=62,000-13,000
Purchases=49,000
(ii) prime cost
prime cost =Cost of direct material consumed +labor cost
Cost of direct material consumed=50,000
labor cost =10,000
prime cost =60,000
(iii)cost of goods of manufactured
Cost of goods available for sales=75,000
Opening inventory of finished goods=8000
cost of goods of manufactured =75,000-8000=67,000
cost of goods of manufactured=67,000
(iv) conversion cost =?
Conversion cost=labor cost + factory over head
Conversion cost=10000+5000=15000
Conversion cost=15000
(v)cost of goods sold
Formula
Sale-G.P=CGS
sale=85000
G.P=21000
CGS=85000-21000=64000
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