Question

The following information is obtained from the records of ABC company which manufactures tables that consist of wood and metal parts: Relevant range 5,000 Units Actual production 5,000 Units Actual sales 5,000 Units $40/ Unit Materials Used: Wood Metal Paint $15,000 $10,000 $ 5,000 $ 50 $ 150 $ 500 Glue Screws Wrapping paper used by selling department Stationary: Factory Selling department $ $ $ 100 50 500 |Administrative departments $ 31,350 Labor cost: Wood and metal cutters $10,000 Tables assemblers $ 7,500 Sanders $ 5,000 Cotonounoninoro 7 on

3. How much is the total factory overhead costs ( indirect material + Indirect labor + indirect other expenses) ?

5. How much is the total conversion costs?

7. How much is the cost of goods manufactured?

9. How much is the cost of goods sold?

10. How much is the gross profit or gross margin?

11. How much is the total selling or marketing expenses?

12. How much is the total amount of administrative expenses?

13. How much is total operating expenses?

14. How much is the income from operation?

Answer 1

The answer of every part has been included in the cost sheet with proper working notes.
And wer- Lost asheet Drrect Material (Wood & Metal & Paint + Glue & Screw 3oggo Direct Labour (wood with Direct Labourlwood wtters & Table assemblert 22,500 Sanders ) Direct Expenses (Rent Factory ] 2000 54,400 Prime cost + factory overhead (w. Note 1) 13100 67800 Net works cost / Factory cost + Administrative over head (W.N-2) 20,00 red 87600 Cost of goods Produced /Manufactured 8 & opening stock - closing stock 87890 cost of goods sold selling overhead (W. N-3) 24050 cost of sales 1,11,850 & Profet (Salas - cost of sales) 88150 86-300 Sales (5000 units & $40) $200,000

Note Ii factory overhead - stationery & supervisors & Factory Machine Depreciation & Factory utilities = 100 + 7000 + 5,000 + 1000 § 13180 2. Administrative oH = Admin. department Material to Salaries + Administrative dep. Depreciation & Rent & utilities = 5.00 + 15000 & 1000 + 2000 + 1550 = 20,680

3. selling oH = wrapping paper + Stationery & Commission & Depreciation & Rent + utilities - 500 +50 + 20,000 +2000 + 1000 + 500 - 24050 whic