Q1. What items are included in manufacturing overhead? [1.5 marks]
Q2. If your fixed monthly utility charge is SR 200, your variable cost is SR2 per kilowatt hour, and your monthly activity level is 3,000 kilowatt hours, what is the amount of your utility bill?
[0.5 mark]
Q3. The following information relates to ALFAHD Corporation (AMOUNTS IN SAUDI RIYAL)
Advertising Costs SR12,470
Administrative Salaries 28,700
Delivery Vehicle Depreciation 1,000
Factory Repair and Maintenance 910
Indirect Labor 11,700
Indirect Materials 9,360
Manufacturing Equipment Depreciation 2,080
Office Rent 42,300
President's Salary 60,000
Sales Revenue 450,000
Sales Salary 38,000
Required:
How much were ALFAHD period costs and product costs? [1 mark]
Q4. ABC Company had the following inventories on May 1, 2019(amounts in SR)
Raw Material 30,000
Finished Goods 40,000
WIP – Material 20,000
WIP – Labor 20,000
WIP – Manufacturing overhead 15,000
During the month, the cost of material purchased was 130,000 direct labor cost incurred was 140,000 and factory overhead applicable to production was 70,000, on May 31, inventories were:
Raw Material 40,000
Finished Goods 50,000
WIP – Material 15,000
WIP – Labor 25,000
WIP Manufacturing overhead 10,000
Required:
Prepare Journal entries on May 31, to show the flow of cost through the proper summary T accounts.
Assume that sales values were 500,000 on credit. [2 marks]