Papa Ground Factory provided the following information for the last calender year: Beginning inventory                                                                                            Direct materials........................................................................................... K60,000              Work in process........................................................................................... K75,000               Ending inventories                                                                                            Direct Materials ...........................................................................................K45,000          Work in process ...........................................................................................K20,000   During the year, direct materials purchased amounted to K200,000, directed labour cost was K200,000 and overhead cost was K400,500. There were 100,000 units produced   Required: 1. Calculate the total cost of direct materials used in production.                  2. Calculate the cost of goods manufactured.                                                  3. Calculate the unit manufacturing cost

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Papa Ground Factory provided the following information for the last calender year:

Beginning inventory                                                                                            Direct materials........................................................................................... K60,000              Work in process........................................................................................... K75,000              

Ending inventories                                                                                            Direct Materials ...........................................................................................K45,000          Work in process ...........................................................................................K20,000

 

During the year, direct materials purchased amounted to K200,000, directed labour cost was K200,000 and overhead cost was K400,500. There were 100,000 units produced

 

Required:

1. Calculate the total cost of direct materials used in production.                  2. Calculate the cost of goods manufactured.                                                  3. Calculate the unit manufacturing cost                                                          4. Of the unit manufacturing coat calculated in requirement 3, assume              K1.50 in direct materials 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 4?

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