1.a). With detail examples, explain the methods of separating mixed cost into fixed and variable costs (3 marks)

(b) Prabjot produces bread in their Company and below refers to the manufacturing

activities for year ended 2016. Show the statement of cost of goods manufactured for 31st

December 2016 (5 marks)

Particulars $

Opening work in progress (10,000 units) 16,000

Closing work in progress (12,000 units) 20,000

Opening stock of raw materials 170,000

Closing stock of raw materials 190,000

Purchases 820,000

(Hire charges of machine@ 0.60 per unit manufactured

Direct wages contracted @0.80 per unit

Manufactured @0.40 per unit of costing WIP) 220,000

Repairs and maintenance 180,000

Units produced 500,000