Answer to Question #268753 in Financial Math for VIK

Question

You are provided with the following information taken from the books of    Mackenzie manufacturing company (MMC) for the month ending 31^st        December, 2017.

 

Answer 1

question

You are provided with the following information taken from the books of the Mackenzie manufacturing company (MMC) for the month ending 31^st   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.

solution

 Cost accounting means where every cost of doing business is recorded in necessary account and cost of production , cost of goods sold , cost of sales etc will be calculated and necessary actions can be taken to control the cost of product.

 

cost of sales=starting inventory+purchases iending inventory

=particulars+factory overhead+officeequipments