Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Al Reem Manufacturing LLC is involved in manufacturing of consumer goods. The company has received an order (job) from Al Sham Production LLC. The management

image text in transcribed
Al Reem Manufacturing LLC is involved in manufacturing of consumer goods. The company has received an order (job) from Al Sham Production LLC. The management of the company has provided you with the following cost data based on the past information related to similar job. Find the profit and sales value that should be quotation for the job the company has received. Direct Material RO 4,000, Selling Overheads RO 1,440, Direct Expenses RO 400, General Overheads is 10% of works cost, Direct Labor is 40% of direct material, Profit is 20% on sales, Factory overhead is 60% of the prime cost. O a. Profit RO 51,000, Sales value RO 3,000 O b. Profit RO 3,000, Sales value RO 15,000 O c. Profit RO 15,000, Sales value RO 3,000 O d. Profit RO 3,000, Sales value RO 51,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Security Audit And Control Features Oracle E Business Suite

Authors: Deloitte Touche Tohmatsu Research Team And Isaca

3rd Edition

1604201061, 978-1604201062

More Books

Students also viewed these Accounting questions