08-08-2006, 04:25 AM
Dear Seniors
AOA
Please solve this problem and highlight the treatment of indirect Materials.
Problem is;
Electronic Amplifiers are the main product of H& Company.
Information for the month of March is as follows,
Inventories on March 1, 1985
Material--- 24080
WIP --- 47130
Finished Goods--- 34842
Further data is as,
Raw material purchsed 148580
Repairs and maintainance 5924
Gas,Light& power 14565
Indirect Material 3480
Indirect Labour 25024
Direct Labour 74500
Supervisors Salary 14290
Inventories at March 31, 1985 are as
Materails 37144
WIP 49460
Finished Goods 32956
Required Cost of Goods Sold Statement.
My Dear Seniors, Please Highlight the treatment of Indirect materials. Whether these would be pooled into the Factory overheads only or Be deducted from the "material used" in order to arrive at the Direct material used because in calculating for CGS we require Direct material along with the Direcr labour.
