Majority Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and
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Question:
Majority Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labour) and one indirect-cost category (manufacturing overhead). The following information is obtained for 2017:
- Total manufacturing costs, R8 000 000
- Manufacturing overhead allocated, R3 600 000 (allocated at a rate of 200% of direct manufacturing labour costs)
- Work-in-Process inventory on 1 January, R320 000
- Cost of Finished Goods manufactured, R7 920 000
Required:
1.1 Use the information in the first two bullet points to calculate:
a. Direct manufacturing labour costs in 2017.
b. Cost of direct materials used in 2017.
1.2 Calculate the ending Work-in-Process Inventory on 31 December 2017.
Related Book For
Managerial Accounting Decision Making and Motivating Performance
ISBN: 978-0137024872
1st edition
Authors: Srikant M. Datar, Madhav V. Rajan
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