Question
Armor world manufactures armored cars. The armor provides low level ballistics protection. Cars are made to customer specification via orders submitted over an internet site.
Armor world manufactures armored cars. The armor provides low level ballistics protection. Cars are made to customer specification via orders submitted over an internet site. The cars are completed and shipped in about one day. As a result, armor world does not maintain any work in process or finished goods inventory. The following costs were incurred in producing and selling mats during January 2023:
Steel used in the armoring $67,150
Armor grade glass for windows 7,000
Factory rent 4,800
Electricity to run the welding equipment 1,300
Labour costs of welders 17,050
Internet sales site 750
Administrative salaries 6,250
Depreciation of welding equipment 3,700
Salary of factory safety inspector 1,750
Office Rent 6,750
REQUIRED:
1. Evaluate these costs, and determine the amount of direct material, direct labor, factory overhead, and selling and administrative costs, The Prime Cots, The Conversion Costs
YOUR ANSWER IN GOOGLE FORM
1A-Total Cost
1B-Direct Material
1C- Factory Overhead
1D-SG&A
1E-Prime Cost
1F- Conversion Costs
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