The following operating costs were extracted from the books of Paper Producers Ltd for the month of February 2020: Details $ Purchases of direct raw materials 8,000,000 Stationery 120,000 Warehouse staff salaries 2,200,000 Direct expenses 800,000 Carriage outwards 600,000 Depreciation of factory machines 500,000 Electricity 700,000 Wages of truck drivers 2,400,000 Production supervisors salaries 3,000,000 Advertising expenses 1,500,000 Sales promotion costs 1,000,000 Training for sales staff 650,000 Wages of production workers 4,000,000 Insurance 1,400,000 Salesmen commission 2,500,000 Indirect raw materials 1,600,000 Indirect factory labour 1,800,000 Miscellaneous expenses 1,300,000 Depreciation of office machinery 400,000 Administrative salaries 3,500,000 Calculate the Prime cost Calculate the Factory overheads Determine the Production costs
The following operating costs were extracted from the books of Paper Producers Ltd for
the month of February 2020:
|
Details |
$ |
|
Purchases of direct raw materials |
8,000,000 |
|
Stationery |
120,000 |
|
Warehouse staff salaries |
2,200,000 |
|
Direct expenses |
800,000 |
|
Carriage outwards |
600,000 |
|
|
500,000 |
|
Electricity |
700,000 |
|
Wages of truck drivers |
2,400,000 |
|
Production supervisors salaries |
3,000,000 |
|
Advertising expenses |
1,500,000 |
|
Sales promotion costs |
1,000,000 |
|
Training for sales staff |
650,000 |
|
Wages of production workers |
4,000,000 |
|
Insurance |
1,400,000 |
|
Salesmen commission |
2,500,000 |
|
Indirect raw materials |
1,600,000 |
|
Indirect factory labour |
1,800,000 |
|
Miscellaneous expenses |
1,300,000 |
|
Depreciation of office machinery |
400,000 |
|
Administrative salaries |
3,500,000 |
Calculate the Prime cost
Calculate the Factory
Determine the Production costs
Calculate the Conversion costs
Calculate the total Administrative costs
Calculate the total Distribution costs
Calculate the Selling costs
Notes:
|
Apportionments of the following charges are as indicated below: |
Selling |
Production |
Administration |
Distribution |
|
Miscellaneous expenses |
30% |
25% |
20% |
25% |
|
Insurance |
25% |
40% |
15% |
20% |
|
Electricity |
15% |
45% |
30% |
10% |
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