Question 5 (Show all the working)

The following total cost information is supplied to you by Billabong Limited:

Direct materials$50,000

Direct labour$20,000

Manufacturing overhead$80,000

Administrative expenses$36,000

Billabong produced and sold 10,000 units at a price of $25 each.

Required:

The cost of goods sold per unit for Billabong was:

A.$7.00

B.$15.00

C.$20.00

D. $18.60

Question 6

Refer to the information for Billabong Ltd in question 5 above. The operating Income for Billabong was?

A.$64,000

B.$34,000

C.$110,000

D.$74,000