QUESTION ONE:

Preparation of a Schedule of Cost of Coods Manufactured and Cost of Coods Sold

The following cost and inventory data for the year just completed are taken from the accounting records of Ecoles

Company:

Costs incurred:

Advertising expense

$$100,000$

ALGCNOU!!

CoLLEGE Online

Direct labour cost

Purchases of raw materials $.................................\mathrm{.}00,000$

Rent, factory building $................................$ $$80,000$

Indirect labour $.................................................$ $$56,300$

Utillities, factory $...............................................$ $$9,000$

Maintenance, factory equipment $............$ $$24,000$

Supplies, factory $.........................................$ $$700$

Depreciation, ofice equipment..................... $$8,000$

Depreciation, factory equipment $..............$ $$40,000$

Required:

Prepare a schedule of cost of goods manufactured. $10$ Marks

Prepare the cost of goods sold section of Eccles Company's income statement for the year. $10$ Marks

QUESTION TWO:

Hlgh$-$Low Mothod, Hilgh$-$Low Method, Cost Formulas

During the past year, the high and low use of three different resources for Wilson Trucking occurred in July and Aprit.

The resources are truck depreclation, fuel, and truck maintenance.