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 Selling price $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

Cost Sheet as on neto produced & Sold 5000 unit 153 mo. 67800 NIL 67800 NIL Direct Materials. 30,000 Direct Labour 22500 as Total factory oreshead cost Cost of goods manufactured - (+) opening finished goods closing finished goods cost of goods sold. Sales (5000 units X40] Guross profit (Sales - COGS) () operating experises. Administrative expenses. 20,000 Selling on marketing expenses. 24050 (-) total operating expenses Income from operation 67800 200,000 192200 4 4050 88150

WORKINGS paint Derect Matersials wood 15000 Metal 10,000 σσσο , 320,000 2 In direct material $ Glue. 50. Screws, 150. forstory & Stationery - $ 200 3) Direct Labour wood & Metal cutters Table assemblers. as toooo. di 7500 Sanders. 5000, 22500 Bill factory overhead Cost Indirect Material Factory supervisors (Indirect labour) & 300 7000. 0 The 5000 Depreciation of Factory machine & Equipment Factory rent to factory Utilities 2010 15300

cost Conversion Calentation 67800 Cost of goods Mancefactured (2) Direct Materials Conversion Cost 30,000 378-00 Administrative expenses (to mattersial used in Administrative 500 department 6) Salames of Acl ministrative 15000 ficers 1000 to Depreciation on administrative equipment et) Rent on administratire a) Vte lities : 1500 tendo administrative expenses $ 20,000 & Selling & Marketing expenses & packaging expenses, 500 Stationary used in Selling department Sales Commission -مع مع معلم 20,000 90fo Rent on marketing department 1000 Utilities (Marketing department) 500 Total selling & Marketing expenses 24050