What is the cost of the direct materials used and prime cost

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Reference no: EM132939255

Bolo 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 RM100,000. Bolo Company also incurred direct expenses of RM 20,000. The inventories at the end of July were:

RM

Raw materials inventory 19,800

Work in process inventory 32,500

Finished goods inventory 22,100

For the month of July, 3,500 units of fishing rods was sold for RM150 each. Bolo Company also incurred selling cost of RM80,000 and administration costs of RM 100,000.

Required:

Problem a) What is the cost of the direct materials used and prime costs for July?

Problem b) What is the cost of goods manufactured for july?

Problem c) What is the cost of goods sold for July?

Problem d) Make Income statement for July.

Reference no: EM132939255

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