Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following Cost Data for the year ended pertained to Novelty Incorporated, a Gift manufacturer. (Amount in Rs ) Service department costs(all services are provided

The following Cost Data for the year ended pertained to Novelty Incorporated, a Gift manufacturer.

(Amount in Rs )

Service department costs(all services are provided to manufacturing department) 50,000

Direct Labour:Wages 2,42,500

Direct Labour : Fringe Benefits 47,500

Indirect Labour Fringe Benefits 15,000

Fringe Benefits for Production Supervisor 4,500

Total Overtime Premium Paid (not included in direct labour wages given above) 27,500

Cost of Idle Time : Production employees 20,000

Administrative Costs 75,000

Rental of Office Space for Sales Personnel 7,500

Sales Commission 2,500

Product Promotion Costs 5,000

Direct Materials used 10,50,000

Advertising Expenses 49,500

Depreciation on Factory Building 57,500

Cost of Finished Goods Inventory at the year end 57,500

Indirect Labour Wages 70,000

Production Supervisor's Salary 22,500

Compute the following costs for the year just ended:

(a) Total prime costs;

(b) Total Manufacturing Overhead Costs;

(c) Total Conversion Costs;

(d) Total Product Costs

(e) Total Period Costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statements

Authors:

1st Edition

1423223853, 9781423223856

More Books

Students also viewed these Accounting questions