A. Bonika Sdn Bhd (BSB) manufactures small camping tents. BSB produced 3,000 units during the year. These camping tents sell for RM150 each. BSB had 500 units in finished goods inventory at the beginning of the year.At the end of the year.there were 800 units in finished goods inventory. The following information was supplied by its accountant: Direct labour cost Purchases of raw materials Depreciation of machinery Insurance expenses Factory rent Factory supervision Utilities expenses Indirect labour cost Administration salaries Sales Commission Advertising Materials inventory, May 1 Work in process inventory, May 1 Finished goods inventory, May 1 Materials inventory, May 31 Work in process inventory, May 31 Finished goods inventory, May 31 RM 10,500 15,000 1,000 4.500 2,000 3,000 2,500 3.500 15,000 12.000 20,000 6,000 12,000 2.100 8,000 7,000 800 Additional information: Only 70% of the utilities expense and 80% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Required: a) Compute prime cost, manufacturing cost and cost of goods manufactured. b) Compute cost of goods sold. c) Prepare an income statement.

A. Bonika Sdn Bhd (BSB) manufactures small camping tents. BSB produced 3,000 units during the year. These camping tents sell for RM150 each. BSB had 500 units in finished goods inventory at the beginning of the year.At the end of the year.there were 800 units in finished goods inventory. The following information was supplied by its accountant: Direct labour cost Purchases of raw materials Depreciation of machinery Insurance expenses Factory rent Factory supervision Utilities expenses Indirect labour cost Administration salaries Sales Commission Advertising Materials inventory, May 1 Work in process inventory, May 1 Finished goods inventory, May 1 Materials inventory, May 31 Work in process inventory, May 31 Finished goods inventory, May 31 RM 10,500 15,000 1,000 4.500 2,000 3,000 2,500 3.500 15,000 12.000 20,000 6,000 12,000 2.100 8,000 7,000 800 Additional information: Only 70% of the utilities expense and 80% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Required: a) Compute prime cost, manufacturing cost and cost of goods manufactured. b) Compute cost of goods sold. c) Prepare an income statement.

Name: Question 3A. Bonika Sdn Bhd (BSB) manufactures small camping tents. B
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Description: Question 3A. Bonika Sdn Bhd (BSB) manufactures small camping tents. BSB produced 3.000 units during the year.These camping tents sell for RM150 each. BSB had 500 units in finished goods inventory at thebeginning of the year.At the end of the year.th

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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