XYZ manufactures household pumps which pass through threedepartments viz. Foundry, Machine Shop and Assembling. The manufacturing expenses are asfollows :FoundryMachineAssemblingTotalShopDirect WagesWorks Overhead$10,0005,000$50,00090,00010,00010,000$70,0001,05,000The factory cost of manufacturing a type 'C' pump was prepared by the company as follows :$16MaterialsDirect Wageś :FoundryMachinery ShopAssembling$428$1,05,000x 100$70,000Works Overhead 150% of Direct Wages i.e.,12Total Cost36It seems that there is some fallacy. Try to correct it.

Name: XYZ manufactures household pumps which pass through threedepartments
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Description: XYZ manufactures household pumps which pass through threedepartments viz. Foundry, Machine Shop and Assembling. The manufacturing expenses are asfollows :FoundryMachineAssemblingTotalShopDirect WagesWorks Overhead$10,0005,000$50,00090,00010,00010,00

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XYZ manufactures household pumps which pass through three departments viz. Foundry, Machine Shop and Assembling. The manufacturing expenses are as follows : Foundry Machine Assembling Total Shop 2$ 50,000 90,000 10,000 10,000 70,000 1,05,000 Direct Wages 10,000 5,000 Works Overhead The factory cost of manufacturing a type 'C' pump was prepared by the company as follows : Materials 16 $ Direct Wageś : Foundry Machinery Shop Assembling 2 4 2 8 $1,05,000 $70,000 Works Overhead 150% of Direct Wages i.e., х 100 12 Total Cost 36 It seems that there is some fallacy. Try to correct it.

XYZ manufactures household pumps which pass through three departments viz. Foundry, Machine Shop and Assembling. The manufacturing expenses are as follows : Foundry Machine Assembling Total Shop 2$ 50,000 90,000 10,000 10,000 70,000 1,05,000 Direct Wages 10,000 5,000 Works Overhead The factory cost of manufacturing a type 'C' pump was prepared by the company as follows : Materials 16 $ Direct Wageś : Foundry Machinery Shop Assembling 2 4 2 8 $1,05,000 $70,000 Works Overhead 150% of Direct Wages i.e., х 100 12 Total Cost 36 It seems that there is some fallacy. Try to correct it.

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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