Al Watan Manufacturer Company, a manufacturer of light, started its production in month of May 2020. Raw materials cost for a light will total $85 per unit. Workers on the production lines are on average paid $15 per hour. A light usually takes 6 hours to complete.

Business Administration Program Final Assessment Semester Spring 2021Page 2 In addition, the rent on the equipment used to assemble light amounts to $8000 per month. Indirect materials cost $4 per phone. A supervisor was hired to oversee production; her monthly salary is $5,500. Factory Cleaning costs are $3,500 monthly. Advertising costs to sell light will be 18,500 per month. The factory building depreciation expense is $200 per month. Property taxes on the factory building will be $10800 per year. Depreciation of the office building is $10800 per annum. Al Watan manufactures Company, on average, 1000 light per month, Required: a) Prepare an answer sheet with the following column headings for Product and Period cost (4marks) b) Compute the cost to produce one unit (1mark) Do proper working for calculation Cost items Product cost Period Cost

Direct Material Direct Labor Manufacturing Overheads