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Question - Boboy Company manufactures fishing rods. At the beginning of July, the following information was supplied by its accountant:
RM
Raw material inventory
40,000
Work in process inventory
21,000
Finished goods inventory
23,200
During July, the direct labour cost was RM43,500, raw material purchases were RM64,000 and total overhead cost was RM108,750. The inventories at the end of July were:
Raw materials inventory
19,800
32,500
22,100
Required -
a) What is the cost of the direct materials used in production during July?
b) What is the cost of goods manufactured for July?
c) What is the cost of goods sold for July?
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