Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jolly Shoes Co. manufactures two types of shoes A and B. Production costs for the year ended 31 March 2010 were: $ 15,00,000 Direct materials

image text in transcribed

Jolly Shoes Co. manufactures two types of shoes A and B. Production costs for the year ended 31 March 2010 were: $ 15,00,000 Direct materials 8,40,000 3,60,000 Production overheads 27,00,000 Direct wages There was no work-in-progress at the beginning or at the end of the year. It is ascertained that: (a) Direct material in type A shoes consists twice as much as that in type B shoes; (b) The direct wages for type B shoes were 60% of those of type A shoes; (c) Production overhead cost was the same per pair of A and B type; (d) Administrative overhead for each type was 150% of direct wages; (e) Selling cost was $1.50 per pair; (A) Production during the year were: Type A 40,000 pairs of which 36,000 were sold; Type B 1,20,000 pairs of which 1,00,000 were sold; (8) Selling price was $ 44 for type A and 528 for type B per pair. Prepare a statement showing cost and profit

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

Principles Of Cost Accounting

Authors: Vanderbeck

13th Edition

0324191693, 978-0324191691

More Books

Students also viewed these Accounting questions

Question

Assess the requirements for strategic LMD

Answered: 1 week ago

Question

How can e-learning benefit organizations and individuals?

Answered: 1 week ago