Comvita management have provided you with the following data for the year ended in 31st December 2018. Amounts in $ Work in Process - Jan 1, 2018 8100 Selling and Administrative Salaries 13800 Insurance on factory and equipment 3600 Work in Process - December 31, 2018 8300 Finished goods inventory, Jan 1, 2018 14000 Indirect material used 4900 Depreciation on factory equipment 2100 Raw material inventory, Jan 1 2018 10100 Property taxes for factory 2400 Finished goods inventory, 31 December 2018 15400 Purchase of raw material 39000 Electricity for factory 6000 Electricity for sales and administrative offices 2500 Other selling and administrative expenses 4000 Indirect labour cost incurred 29000 Depreciation on factory building 3800 Depreciation on cars used by sales personnel 1200 Direct labour cost incurred 79000 Raw material inventory, Dec 31, 2018 11000 Rental for warehouse space to store raw material 3100 Rental of space for managing director's office 1700 Sales revenue 205800 Income tax expense 5100 The Comvita management is interested in product costing system to keep track of the flow of manufacturing cost from time production begins until the finished goods are sold. Therefore, have requested you to prepare the following two questiona Question no 1: Schedule of Cost of goods manufactured for the year ended 31st December 2018. Evaluate the components of manufacturing costs in schedule and provide recommendations to Comvita management on how to minimise per unit goods manufactured cost QUESTION NO 2 Company schedule of cost of goods sold for the year ended 31st December 2018. Evaluate the components of cost of goods sold in schedule and provide recommendations to Comvita management on how to minimise per unit goods manufactured cost

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter10: Accounting Systems For Manufacturing Operations

Section: Chapter Questions

Problem 10.9E: Recording issuing of materials Materials issued for the current month are as follows a. Determine...

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Comvita management have provided you with the following data for the year ended in 31^st December 2018.

	Amounts in $
Work in Process - Jan 1, 2018	8100
Selling and Administrative Salaries	13800
Insurance on factory and equipment	3600
Work in Process - December 31, 2018	8300
Finished goods inventory, Jan 1, 2018	14000
Indirect material used	4900
Depreciation on factory equipment	2100
Raw material inventory, Jan 1 2018	10100
Property taxes for factory	2400
Finished goods inventory, 31 December 2018	15400
Purchase of raw material	39000
Electricity for factory	6000
Electricity for sales and administrative offices	2500
Other selling and administrative expenses	4000
Indirect labour cost incurred	29000
Depreciation on factory building	3800
Depreciation on cars used by sales personnel	1200
Direct labour cost incurred	79000
Raw material inventory, Dec 31, 2018	11000
Rental for warehouse space to store raw material	3100
Rental of space for managing director's office	1700
Sales revenue	205800
Income tax expense	5100

The Comvita management is interested in product costing system to keep track of the flow of manufacturing cost from time production begins until the finished goods are sold. Therefore, have requested you to prepare the following two questiona

Question no 1:

Schedule of Cost of goods manufactured for the year ended 31^st December 2018. Evaluate the components of manufacturing costs in schedule and provide recommendations to Comvita management on how to minimise per unit goods manufactured cost

QUESTION NO 2

Company schedule of cost of goods sold for the year ended 31^st December 2018. Evaluate the components of cost of goods sold in schedule and provide recommendations to Comvita management on how to minimise per unit goods manufactured cost

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