JAMB - Accounts Principles Of Accounts (2024 - No. 74)
The following balances was exgtracted from the books of Oluwalambe Ltd, manufacturer, on 31st December 2007
| Stock of raw materials 1 - 1 - 2007 | 8000 |
|
Purchase of raw materials |
450000 |
|
Stock of raw materials 31 - 12 - 2007 |
95000 |
|
Direct wages |
65000 |
|
Indirect wages |
28000 |
|
Depreciation on plants |
32000 |
|
Factory rent |
3500 |
|
Work in progress 1- 1- 2007 |
32500 |
|
Work in progress 31 - 12- 2007 |
37500 |
Factory overhead cost is
#63,500
#68,500
#58,500
#12,800
Explanation
Factory Overhead Cost = Indirect Wages + Depreciation on Plants + Factory Rent
Factory Overhead Cost = #28,000 + #32,000 + #3,500
Factory Overhead Cost = #63,500
Factory Overhead Cost = #28,000 + #32,000 + #3,500
Factory Overhead Cost = #63,500
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