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a)Planning
b)management
c)control.
3) _____________ is the key to managerial job and the basis for responsibility.
(authority)
a) Authority
b) Leadership
c) Management
a) Past
b) Present
c) Future
Chapter#2
FINANCIAL STATEMENTS: THE BASES FOR PLANNING AND CONTROL
Q1) The cost department of Eagle Corporation prepared the following data and costs
of the Direct material for the year 2008.
SOLUTION:
i)Direct Material Closing = Direct Material available for use- Direct Material Consumed
=>83750-51150=32600
Solution:
i) Conversion cost – FOH = DL= 49700
ii) Prime Cost-DL= DM
iii) DM+DL+FOH= Total manufacturing Cost
Required :
i) COGS
ii) Gross Profit
iii) Direct Material
SOLUTION:
Sales 255000
Less: COGS (76500)
Gross Profit 178500
Less:Expenses (20500)
----------
Income 158000
iii) DM
COGS-FOH-DL=DM= 33500
SOLUTION:
Conversion Cost – FOH = DL
Prime Cost – DL= DM