Question: Congo Ltd (CL) faces many situations where it needs to apply the decision tools studied from the university, such as analysing the statement of financial
Congo Ltd (CL) faces many situations where it needs to apply the decision tools studied from the university, such as analysing the statement of financial position for optimal inventory levels. As a results, the company has established a separate manufacturing facility to produce tables. Now assume the company produces 1,000 units of tables per month. CL monthly manufacturing costs and other data for the company are as follows: 1. Rent on manufacturing equipment (lease cost) RM 2,000 per month 2. Insurance on manufacturing building RM 750 per month 3. Raw materials (plastic, fibreglass, etc.) RM 180 per product 4. Utility costs for manufacturing facility RM 1,000 per month 5. Supplies for administrative office RM 800 per month 6. Wages for assembly line workers in manufacturing facility RM 130 per product 7. Depreciation of office equipment RM 650 per month 8. Miscellaneous manufacturing materials RM 12 per product 9. Property taxes on manufacturing building RM 24,000 per year 10. Manufacturing supervisor's salary RM 5,000 per month 11. Advertising for the company RM 30,000 per year 12. Sales commission RM 30 per product 13. Depreciation of manufacturing building RM 4,000 per month Required: (a) Prepare an answer sheet with the following column headings: Product Costs Cost Item Direct Materials Direct Labours Manufacturing Overhead Period Costs Enter each cost item above (item 1 - 13) on your answer sheet, placing an 'X' mark under appropriate headings. I (13 marks) (6) Compute total manufacturing costs for the month. (12 marks)
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