As the flow chart shows, the company uses two raw materials: “X” and “Y”.

Raw material “X” is used in the manufacturing process 1, and raw material

“Y” is used in the manufacturing process 2, them the finished good product is obtained.

Data available are as follows:

Concepts Beginning Ending Raw materials “X” inventory 0 0 Raw materials “Y” inventory 0 0 Work-in-process “1” inventory 0 0 Work-in-process “2” inventory 0 0 Finished goods inventory 2,000 units 70€/unit 300 units

• Material X used were € 30,000 total amount and material Y used were €

10,800 total amount.

• The total amount of warehousing costs is €4,080.

• The allocation base used to allocated warehousing cost is the total amount of direct material used.

• Regarding Direct manufacturing labour cost at process 1 were €5,000 and at process 2 were €4,000.

• Regarding Indirect manufacturing overhead cost at process 1 were €10,000 and at process 2 were €9,000.

• The units produced at manufacturing process 2 are 1,000 units.

Task:

1. Calculate the warehousing allocation rate 2. Calculate the warehousing costs allocate to each raw material.

3. Calculate the costs of good manufactured at process 1 and 2.

4. Assuming the Company uses the FIFO method to value the finished goods inventory, calculate the costs of goods sold.