Question 2:

ABC Company has the following information for the period ended 31 December 2020.

Direct material purchased OMR 360000

Direct labor OMR 200000

Factory maintenance OMR 29000

Power and heatfactory OMR 18500

Direct Expenses 15 % of the direct labor cost

Indirect factory labor OMR 21000

Freight In OMR 7000

Depreciation - Factory OMR 22300

Advertisement expenses OMR 8500

Inventories, 1 January 2020:

Direct Material OMR 41700

Work-in-process OMR 50000

Finished goods OMR 75000

Purchase returns of direct materials OMR 7400

Depreciationadministrative OMR 13800

Inventories, 31 December 2020:

Material OMR 19000

Work-in process OMR 32000

Finished goods 3000 Units

Total Production Units 35000 units

Finished goods are valued at the current unit manufacturing cost.

You are required to prepare:

I. Manufacturing Statement

II. Calculate unit production cost.