Thataone Ltd supplied the following information:
Thataone Ltd supplied the following information:
Unit 1-Review Questions
REQUIRED; calculate the following:
1. Manufacturing overheads cost
2. Conversion cost
3. Total manufacturing costs
4. Direct material cost
5. Prime cost
6. Assume Thataone Ltd had manufactured 1 000 units during the period, cost per unit cost is equally to.......
7. Refer to required No. (6) above. What would be the selling price, if Thataone Ltd wanted a mark-up of 40%?
8. Refer to required No. (6) above. What would be the selling price, if Thataone Ltd wanted a gross profit of 40%?
Homework Answers
1.
| Factory supervisors salary | $ 7,000 |
| Factory rent | $ 6,000 |
| Indirect material | $ 2,000 |
| Factory insurance | $ 2,000 |
| Depreciation of factory equipment | $ 3,000 |
| Manufacturing overhead cost | $ 20,000 |
2.
| Manufacturing overhead cost | $ 20,000 |
| Direct labor | $ 16,000 |
| Conversion cost | $ 36,000 |
3.
| Total manufacturing cost ($36,000/60*100) | $ 60,000 |
4.
| Direct material cost ($60,000*40%) | $ 24,000 |
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