The normal capacity of an entity is 350 000 units per annum. The raw material Cost IS R220 per unit and direct labour is R250 per unit. Variable production overheads are R60 per unit and fixed production overheads incurred amounts to R5 250 000. The closing balance of finished goods is 9 500 units (assume there is no opening balance). What is the cost of sales figure if the actual production was 280 000 units for the year?

Answer rating: 100% (QA)

First we need to calculate the total cost of producing 280000 units Variable cost per unit Raw mate... View the full answer