Comprehensive problem on unit costs, product costs. (30 minutes)

Overtoom International Nederland, BV, manufactures and sells metal shelving. It began operations on 1 January 1999. Costs incurred for 1999

(V stands for variable; F stands for fixed) are as follows:  l01

Production in 1999 was 100,000 units. Two kilograms of direct materials are used to make one unit of finished product.
Revenues in 1999 were Dfl 873,600. The selling price per unit and the purchase price per kilogram of direct materials were stable throughout the year. The company’s ending stock of finished goods is carried at the average unit manufacturing costs for 1999. Finished goods stock, at 31 December 1999, was Dfl 41,940.
REQUIRED 1. Direct materials stock, total cost, 31 December 1999.
2. Finished goods stock, total units, 31 December 1999.
3. Selling price per unit 1999.
4. Operating profit 1999. Show your computations.

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Direct materials used costs Direct manufacturing labour costs Plant energy costs Indirect manufacturing labour costs Indirect manufacturing labour costs Other indirect manufacturing costs Other indirect manufacturing costs Dfl 280,000V 60,000V 10,000V 20,000V 32,000 F 16,000V 48,000 F Marketing, distribution and customer-service costs Marketing, distribution and customerservice costs Administrative costs 245,700 V 80,000 F 100,000 F Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution, and customer-service costs are variable with respect to units sold. Stock data are as follows: DIRECT MATERIALS WORK IN PROGRESS FINISHED GOODS BEGINNING, 1 JANUARY 1999 0 kg O units O units ENDING, 31 DECEMBER 1999 2,000 kg O units ? units