Question
d) The following cost information relates to Andy manufacturing Ltd. It is for the month ended 30th April 2021. Raw materials ................................................$3,000 Direct Labour .................................................$8,000
d) The following cost information relates to Andy manufacturing Ltd. It is for the month ended 30th April 2021.
Raw materials ................................................$3,000
Direct Labour .................................................$8,000
Factory Rent ...................................................$1,500
Factory Power ................................................$5,000
Factory Supervisors salaries .......................$2,000
Indirect wages ................................................$1,000
General administration expenses ...............$4,000
General Selling & Distribution expenses ....$1,500
Transport charges ..........................................$1,200
Other direct expenses ....................................$1,000
Depreciation of motor van ...............................$200
Depreciation of office building ........................$150
Commission to salesmen .................................$200
Audit fees ............................................................$300
Profit is 17% of total cost of sales
Required
- Help management of Andy prepare a cost sheet (clearly showing Prime cost, Factory works, production cost, and total cost of sales. (12 marks)
- Assuming 600 units were produced and sold, determine the cost per unit. (03 marks)
- Determine the sales revenue that was obtained at the end of the month. (03 marks) Total 30 marks
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