3. Palmer Manufacturing produces weather vanes. For the year just ended, Palmer produced

10,000 wveather vanes with the following total costs:

K20,000

Direct

materials

35,000

Direct labor

10,000

Overhead

Research and development expenses 10,500

7,750

Selling expenses

12,200

Administrative expenses

inventory consisted of 630 units witha total cost of K4,095. There were no beginning or

During the year, Palmer sold 9,800 units for K12 each. Beginning finished goods

ending inventories of work in process.

Required:

(4 Marks)

1. Calculate the unit costs for the following: direct materials, direct labor, overhead,

prime cost, and conversion cost.

2. Prepare schedules for cost of goods manufactured and cost of goods sold. (6

Marks