Question
A shoe factory produces the following product: No.41 dress shoe for men and in the month of July 2020 it produces 500 pairs Items needed
A shoe factory produces the following product: No.41 dress shoe for men and in the month of July 2020 it produces 500 pairs
Items needed for production:
125 mutton leathers at $ 3000 each
1,000 soles at $ 300 each
1,000 shoelaces at $ 10 each
$ 100 glue
The elaboration of the 500 pairs is paid per unit of work at $ 500 c / pair.
The time to carry out the work is 30 days.
For the development of the production, a cost accountant is needed which earns a monthly salary of $ 200,000 and a production supervisor with a monthly salary of $ 250,000.
The depreciation of machinery and equipment annually is $ 36,000
$ 5,000 electric, water and phone bills are paid from the factory
Selling expenses $ 30,000
Administration expenses $ 20,000
Financial costs $ 5,500
The sale price is established based on the total cost considering a percentage of 60%
The company sells 450 pairs of shoes per month. Please calculate the following:
a) Prime costs.
b) Conversion costs.
c) Production Costs.
d) Unit Production Costs
e) Unit Sale Price.
f) Total Income.
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