Exercise 1:

Perek PLC has the following information of last year:

Raw material used in production = 326

Total manufacturing costs charged to production during the year (includes direct material, direct labour, and overhead equal to 60% of direct labour cost) = 686

Cost of goods available for sale = 826

Selling and admin expenses = 25

Inventory raw material = 75 beginning, 85 ending

Inventory work in progress = 80 beginning, 30 ending

Inventory finished goods = 90 beginning, 110 ending

Calculate:

1. Direct labour cost charged to production during the year.

2. The cost of goods manufactured.

3. The cost of goods sold.