Question
The costs incurred by Treats Bakery Ltd. as part of its operations are listed below. Cost Items Amount $ Insurance on factory equipment 4,700 Wheat
The costs incurred by Treats Bakery Ltd. as part of its operations are listed below.
Cost Items | Amount $ |
Insurance on factory equipment | 4,700 |
Wheat Flour and other key baking materials | 55,800 |
Depreciation of computers used in the sales department | 1,500 |
Bakers wages | 38,600 |
Utility cost of the sales department | 1,300 |
Rental for factory space | 7,800 |
Depreciation on ovens and other factory equipment | 4,800 |
Rental of space for the sales department | 5,600 |
Salary of factory supervisor | 17,000 |
Factory utility cost | 6,900 |
Required
You are required to calculate the:
a) Prime cost (2 Marks)
b) Conversion cost (2 Marks)
c) Period cost (3 Marks)
d) Product cost (3 Marks)
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