A product that a company manufactures requires 3kg of materialAcosting $6.20 per kg and 4kg of material
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A product that a company manufactures requires 3kg of materialAcosting $6.20 per kg and 4kg of material B costing $5.60 per kg. The product requires 2 hours of labour at a cost of $7.40 per hour. The product is sold in packs of 10 and the packaging for 10 units costs $22. Fixed production costs are $60,000 per annum and selling, distribution and administration costs are $24,000 per annum. The company makes 15,000 units of the product each year.
a)Calculatethe prime cost?
b)Calculatethe production cost of the product?
c)Calculatethe total cost of the product?
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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