Classify each manufacturing cost as material, labor, or manufacturing overhead cost. Each manufacturing cost should also be classified as fixed or variable or semi- variable cost. Note: Follow the sample format below. - Define each non-manufacturing expense either as fixed or variable or semi-variable according to your judgment. Note: Follow the sample format below. SAMPLE FORMAT ELEMETS OF COST AND BEHAVIOR DESCRIPTION ELEMENTS OF COST BEHAVIOR OF COST/ EXPENSE D. D. Mfg. Fixed Variable Semi- Material Labor Overhead Fixed Manufacturing Expenses an Cost of Good Sold Direct material (Example) Raw materials Buildings Plant and machinery Electrical equipment and installations Motor vehicles Furniture, fixtures and fittings Office equipment Material handling equipment Loose tools Laboratory equipment Raw material Sapares, consumbles and scrap Finished goods Work in progress Good in transit NON-MANUFACTURING EXPENSES: Admin Expenses (Example): Depreciation (Example) Employee Costs Legal and professional charges Insurance Repairs and maintenance Travelling Directors remuneration Contributions to local organization Communication Printing and stationery Vehicle running and Maintenance Allowance for Credit losses Selling and Marketing Expenses (Example): Newspaper advertisements (Example) Marketing and freight| Employee costs Advertisement and sales promotion Travelling Property, plant and equipment Property, plant and equipment is stated at cost less accumulated depreciation and any impairme Capital work in progress is not depreciated. Depreciation is calculated on a straight-line bas estimated useful lives of the assets as follows: Years Buildings Plant and machinery Electrical equipment and installations Motor vehicles Furniture, fixtures and fittings Office equipment Material handling equipment Loose tools Laboratory equipment 20 20 10 4 4 4 10 10 10 The carrying values of property, plant and equipment are reviewed for impairment when events in circumstances indicate the carrying value may not be recoverable. If any such indication where the carrying values exceed the estimated recoverable amount, the assets are written do recoverable amount, being the higher of their fair value less costs to sell and their value in use. 24. Administrative expenses 2019 2018 Group RO Parent Company RO Group RO Parent Company RO Employee costs Legal and professional charges Insurance Repairs and maintenance Travelling Directors' remuneration Contributions to local organization Communication Other sundry expenses Printing and stationery Vehicle running and Maintenance Allowance for credit losses (note 10) 4,131,694 274,421 129,412 223,438 117,755 117,490 100,000 103,646 128,832 33,750 12,637 3,533,247 182,003 127,791 213,843 82,759 117,490 100,000 52,113 42,542 29,848 12,637 3,854,567 565,540 235,967 187,047 122,927 119,800 100,110 92,708 29,820 51,913 35,942 3,038,377 393,945 153,335 171, 174 96,798 119,800 100,000 50,110 37,187 48,302 15,174 1,077,335 6,450,410 1,077,112 5,571,385 (583,849) 4,812,492 (633,368) 3,590,834 25. Selling and distribution expenses 2019 2018 Marketing and freight Employee costs Advertisement and sales promotion Travelling Group RO 1,978,045 974,315 109,088 107,493 Parent Company RO 1,081,510 825,959 70,472 107,493 Group RO 2,113,191 1,049,780 173,431 89,941 Parent Company RO 1,343,997 878,079 150,215 74,868 3,168,941 2,085,434 3,426,343 2,447,159 9. Inventories 2019 2018 Group Parent Company RO 6,814,267 2,447,778 Parent Company RO Group RO 7,202,586 3,851,059 RO 6,514,291 3,632,957 5,848,571 2,191,381 Raw materials Spares, consumables and scrap Finished goods 11,398,728 10,514,857 14,406,237 13,048,296 Work-in-progress Goods in transit 22,452,373 2,129,227 1,785,643 19,776,902 1,918,869 143,931 24,553,485 1,653,257 497,632 21,088,248 1,149,874 122,326 26,704,374 26,367,243 (1,763,056) 21,839,702 (1,502,291) 22,360,448 (1,502,291) Less: provision for slow moving and obsolete items (1,552,291)
