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Question 1 You are the Cost Accountant of Kingston Manufacturing Company. The following information for the month of February 2014 has been presented to

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Question 1 You are the Cost Accountant of Kingston Manufacturing Company. The following information for the month of February 2014 has been presented to you for analysis. Details Office expenses Production foremen salaries Wages of production workers Depreciation of factory machinery Materials used to make products 4,800,000 $ 500,000 1,600,000 600,000 4,600,000 Depreciation of office machinery 200,000 Warehouse supervisors salaries 500,000 Advertising expenses 400,000 License fee paid to manufacture products 300,000 Wages of truck drivers 800,000 Salesmen salaries 3,600,000 Electricity (see notes) 600,000 Salaries of the administrative staff 4,000,000 Carriage outwards 340,000 Insurance 450,000 Janitorial factory wages 250,000 Cost of seminar for warehouse staff 350,000 Notes: Insurance and electricity expenses should be apportioned as follows: Details Production Administrative Selling Distribution Required: (a) Prime cost.(3 marks) (b) Factory overheads.( 3 marks) (c) Production cost. (3 marks) (d) Conversion cost.(3 marks) Electricity 50% 30% 10% 10% Insurance 40% 20% 25% 15%

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