Calculate the detailed total product and period cost for the current month based

Question

Calculate the detailed total product and period cost for the current month based on the following transactions : purchase wood to be used in the manufacturing of tables and chairs, each table needs 2 m2 and a chair 1 m2 wood Total units manufactured is 500 tables and 1000 chairs Wood cost R50 per m2. No opening Or closing inventory To pay delivery services R1,250 for the delivery of wood Pay wage bill for the month. There Are 2 manufacturing division, table division and chair division. Table division has 2 employees paid R80 per hour and chair division has 4 employees paid R75 per hour.company work 40 hours per week.4 weeks in this month and all labor is variable. Pay telephone bill of R4,000 Pay security at gate R4,500 and security guard at office R4,500 per month Pay insurance of R17,000.insurance gets allocated based on floor space, factory has 1500m2 and office 500m2 Pay consumables used in manufacturing R15,000 Pay storeman salary of R5,000 Pay photocopier R2,500 Pay distribution company R3,500 for delivery of tables and chairs manufactured Calculate the detailed total product and period cost for the current month based on the following transactions : purchase wood to be used in the manufacturing of tables and chairs, each table needs 2 m2 and a chair 1 m2 wood Total units manufactured is 500 tables and 1000 chairs Wood cost R50 per m2. No opening Or closing inventory To pay delivery services R1,250 for the delivery of wood Pay wage bill for the month. There Are 2 manufacturing division, table division and chair division. Table division has 2 employees paid R80 per hour and chair division has 4 employees paid R75 per hour.company work 40 hours per week.4 weeks in this month and all labor is variable. Pay telephone bill of R4,000 Pay security at gate R4,500 and security guard at office R4,500 per month Pay insurance of R17,000.insurance gets allocated based on floor space, factory has 1500m2 and office 500m2 Pay consumables used in manufacturing R15,000 Pay storeman salary of R5,000 Pay photocopier R2,500 Pay distribution company R3,500 for delivery of tables and chairs manufactured

Explanation / Answer

Calculation of product and period costs Product Period Cost of wood purchased 100000 (500*2*50)+(1000*1*50) Freight on wood 1250 Direct wages 73600 (80*2*40*4)+(75*4*40*4) Telephone bill 4000 Security Guard expenses 4500 4500 Insurance 12750 4250 Consumables 15000 Storeman salary 5000 Photocopier 2500 Delivery expenses 3500 Total 212100 18750

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