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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.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...
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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.
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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