Mid Term Questions ( Production, Accounting & Business Ethics)

The total manufacturing costs for the year were Tk.7,10,000; the total cost of goods manufactured Tk.7,35,000; the goods available for sale totaled Tk.7,50,000; and the cost of goods sold totaled Tk.7,20,000. Required: 1. Prepare a schedule of cost of goods manufactured and the cost of goods sold section of the company's income statement for the year. 2. Assume that the amounts given above are for the equivalent of 40,000 units produced during the year. Compute the average cost per unit for direct materials used, and for rent on the factory building? 3. Assume that in the following year, the company expects to produce 50,000 units. What average cost per unit and total cost would you expect to be incurred for direct materials? For rent on the factory building? [CLO-2: L-3] 5 + 2.5+2.5 = 10 marks