Question 3Bonika Sdn Bhd (BSB) manufactures small camping tents. BSB produced 3,000 units during the year. These camping tents sell for RM150 each. BSB had500 units in finished goods inventory at the beginning of the year At the end of the year, there were 800 units in finished goods inventory. The followinginformation was supplied by its accountant:RMDirect labour cost10,500Purchases of raw materials15,000Depreciation of machinery1,000Insurance expenses4,500Factory rent2,000Factory supervision3,000Utilities expenses2,500Indirect labour cost3,500Administration salaries15,000Sales Commission12,000Advertising20,000Materials inventory, May 16,000Work in process inventory, May 112,000Finished goods inventory, May 1Materials inventory, May 312,100৪,000Work in process inventory, May 317,000Finished goods inventory, May 31800Additional information:Only 70% of the utilities expense and 80% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling andadministrative activities.Required:a) Compute prime cost, manufacturing cost and cost of goods manufactured.b) Compute cost of goods sold.

Prime costs is the cost of raw materials used and direct labour costs. Manufacturing costs includes…

Answered: Required: a) Compute prime cost,…

Business

Accounting

Required: a) Compute prime cost, manufacturing cost and cost of goods manufactured. b) Compute cost of goods sold.

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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