Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

FIFI Company of Dodoma, Tanzania, is a family-owned enterprise that makes birdcages for the central Tanzania market. The company sells its birdcages through an

image text in transcribed

FIFI Company of Dodoma, Tanzania, is a family-owned enterprise that makes birdcages for the central Tanzania market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. All of the company's transactions with customers, employees, and suppliers are conducted in cash; there is no credit. The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated TZS 330,000 of manufacturing overhead for an estimated activity level of TZS 200,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: TZS 25,000 Raw materials Work in process TZS 10,000 Finished goods TZS 40,000 During the year, the following transactions were completed: a. Raw materials purchased for cash TZS 275,000. b. Raw materials requisitioned for use in production, TZS 280,000 (materials costing TZS 220,000 were charged directly to jobs; the remaining materials were indirect). c. Costs for employee services were incurred as follows: Direct labor Indirect labor Sales commissions TZS 180,000 TZS 72,000 TZS 63,000 Administrative salaries TZS 90,000 d. Rent for the year was TZS 18,000 (TZS 13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs incurred in the factory, TZS 57,000. f. Advertising costs incurred, TZS 140,000. g. Depreciation recorded on equipment, TZS 100,000. (TZS 88,000 of this amount was on equipment used in factory operations; the remaining TZS 12,000 was on equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, TZS?. i. Goods that had cost TZS 675,000 to manufacture according to their job cost sheets were completed. j. Sales for the year totaled TZS 1,250,000. The total cost to manufacture these goods according to their job cost sheets was TZS 700,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

7th edition

978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286

More Books

Students also viewed these Accounting questions