Answer to Question #266572 in Financial Math for JAMES

Question

QUESTION ONE

You are provided with the following information taken from the books of

Mackenzie manufacturing company (MMC) for the month ending 31st

December, 2017.

Costs incurred (Tshs. ‘000)

Depreciation – factory buildings 60,000

Depreciation – office buildings 12,000

Salesmen commissions 52,000

Rent – factory 120,000

Rent-office 90,000

Indirect labour 84,000

Direct raw materials 190,000

Direct labour cost 135,000

Maintenance –factory buildings 36,000

Maintenance –office buildings 22,500

Supplies factory 10,000

Raw materials – 1/12/2017 12,000

Raw materials – 31/12/2017 15,000

Work in process – 1/12/2017 7,500

Work in process – 31/12/2017 30,000

Required;

Prepare the cost statement in good form (15 marks)

Answer 1

COST STATEMMENT

direct raw materials Tshs Tshs Tsh

(add) opening stock (raw materials) 12000

(add) direct raw materials 190000

less closing stock(raw materials) 15000

187000

direct materials consumed

(add)direct labor 135000

(add) indirect labor 84000

(add) factory supplies 10000

(add) opening work in progress 7500 (add)(maintenance of factory building) 36000

340000

(less)closing stock work in progress 30000

prime cost 330000

overheads

(add )factory rent 12000

(add) office rent 90000

(add)office maintenance cost 22500

(add)factory maintenance 36000

(add)office depreciation 12000

(add)factory depreciation 60000

(add)Salesmen commissions 52000

total overheads 284500

OTAL COS OF SALES 614500