Question 3Bonika Sdn Bhd (BSB) manufactures small camping tents. BSB produced 3,000 units during theyear. These camping tents sell for RM150 each. BSB had 500 units in finished goods inventoryat the beginning of the year.At the end of the year.there were 800 units in finished goodsinventory. The following information was supplied by its accountant:RM10,50015,000Direct labour costPurchases of raw materialsDepreciation of machineryInsurance expenses1,0004,5002,000Factory rentFactory supervisionUtilities expensesIndirect labour cost3,0002,5003,50015,00012,000Administration salariesSales CommissionAdvertisingMaterials inventory, May 1Work in process inventory, May 1Finished goods inventory, May 1Materials inventory, May 31Work in process inventory, May 31Finished goods inventory, May 3120,0006,00012,0002,1008,0007,000800Additional 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.

Prime Cost= Direct Material Cost+ Direct labor Cost Manufacturing Cost= Prime Cost +Manufacturing…

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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