Ambo, Inc. manufactured 50,000 kilos of compound Am in 2011 at thefollowing costs:Opening work-in-process of P88,125.Materials of P182,500 of which 90% is direct materialsLabor of P242,500 of which 93% is direct labor.Closing work-in-process of P67,500.Factory overhead is 125% of direct labor cost and includes indirect materials and indirect labor. The costof goods manufactured is:651,056692,306706,906O 727,531

Introduction The following formula is used to calculate the cost of goods manufactured:- Cost of…

Answered: Ambo, Inc. manufactured 50,000 kilos of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The cost of direct labor was 58000. The charging rate of the CBS was 25% of the cost of direct labour. The company's expenses during the above period were: depreciation = 1500, exhibition expenses = 800, factory insurance premiums = 650, administrative employees' fees=22000, depreciation of factory machinery = 1400, rent=6500, salesmen's travel expenses = 1500, factory warden salaries = 2200, cleaning costs = 450, subscriptions = 150, maintenance costs = 320, indirect production materials = 750, factory maintenance costs = 1100, advertising costs = 5100, salaries of salesmen = 10000, utility costs = 4800, sample costs = 650, indirect work = 3600, interest debit & related financial expenses = 750, foreman salaries = 4100, other promotion costs = 390, lawyers' fee = 10000, accountants' fee = 11000, miscellaneous production consumables = 900. how much is the CBS?
Scott Corporation produces a part for use in the production of one of its products. The per-unit costs associated with the annual production of 1,000 units of this part are as follows: Direct Materials $10.50 $24.00 Direct labor Variable factory overhead $5.50 Fixed factory overhead $12.00 Total Costs $52.00 $5,000 of the fixed factory overhead costs associated with the production of this product are common fixed costs. Larson Company has offered to sell 1,000 units of the same part to Scott Corporation for $42 per unit. Scott should: Select one: a. buy the part, because this would save $10.00 per unit. X b. buy the part, because this would save the company $5,000 annually. c. make the part, because this would save the company $5,000 annually. d. make the part, because this would save $2.00 per unit.
Khalid LLC Trading Company has produced 12,500 units which is 25% capacity level in the factory. The company has used raw material to make the production worth of RO 33 per unit. The company has incurred direct labour cost at RO 31per unit along with direct expenses RO 29 per unit. The company spent RO 122,500 on fixed expenses in the factory with per unit cost of RO 9.8. Other factor expenses for the total production of 12,500 units has arrived at RO 13 per unit. Administration expenses were incurred RO 14 per unit out of which fixed expenses belongs to 40%. Company has appointed a salesman for selling the products produced in the company at RO 15 per unit produced out of which 25% belongs to fixed. The company has also incurred distribution expenses of RO 16 per unit out of which 30% are variable. Requirements: The company has approached the you and ask to prepare the flexible budgets for two more required capacity levels; - 15,000 units.…

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