Required: (a)Compute prime cost, manufacturing cost and cost of goods manufactured. (b)Compute cost of goods sold.
Required: (a)Compute prime cost, manufacturing cost and cost of goods manufactured. (b)Compute cost of goods sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 3
Bonika Sdn Bhd (BSB) manufactures small camping tents. BSB produced 3,000 units during the
year. These camping tents sell for RM150 each. BSB had 500 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 following information was supplied by its accountant:
RM
10,500
15,000
Direct labour cost
Purchases of raw materials
Depreciation of machinery
Insurance expenses
1,000
4,500
2,000
Factory rent
Factory supervision
Utilities expenses
Indirect labour cost
3,000
2,500
3,500
15,000
12,000
Administration salaries
Sales Commission
Advertising
Materials inventory, May 1
Work in process inventory, May 1
Finished goods inventory, May 1
Materials inventory, May 31
Work in process inventory, May 31
Finished goods inventory, May 31
20,000
6,000
12,000
2,100
8,000
7,000
800
Additional 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 and administrative activities.
Required:
(a)Compute prime cost, manufacturing cost and cost of goods manufactured.
(b)Compute cost of goods sold.
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