Premium Ltd manufactures leather bags. During the month of July, Premium Ltd manufactured 500 leather bags. The
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Question:
Premium Ltd manufactures leather bags. During the month of July, Premium Ltd manufactured 500 leather bags. The manufacturing costs and other expense data for the month of July are as follows.
Direct Material $80,000
Direct Labour $25,000
Manufacturing Overhead Cost $75,000
Selling & Distribution Cost $15,000
Administrative Expenses $12,000
Required
a) From the information, determine the total amount of:
1. Prime cost
2. Conversion cost
3. Product cost
4. Period cost
b) Calculate the cost to produce one leather bag.
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
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