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Hi sir
I have a question below to ask you
A product that a company manufactures requires 3kg of material. A costing $6.20 per kg and 4 kg of material B costing $5.60 per kg. The product requires 2 hours of labour at a cost of $7.40 per hour. The product is sold in packs of 10 and the package for 10 units costs 422. Fixed production costs are $60,000 per annum and selling, distribution, and administration costs are 424,000 per annum. The company makes 15,000 units of the product each year.
a)Calculate the prime cost?
b)Calculate the production cost of the product?
c)_Calculate the total cost of the product?
Sir, please answer it in a simple way.
Have a nice day!
Thank you !!!Please do not simply type out a full question and expect to be provided with a full answer. You must have an answer in the same book in which you found the question, and so ask about whatever it is in the answer that you are not clear about and then I will explain.
Everything needed to be able to attempt this question is covered in my free lectures. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
this is my answer
the prime cost = (18.6 + 22.4) + 14.8 = 55.8
the production cost of the product – i don’t know how to calculate it.
= 55.8 x 15,000 + 60,000 = 897,000
the total cost of the product
= 897,000 + 24,000 = 921,000
Could you explain to me please with a numerical example, please?Again, you must have a printed answer so ask about whatever it is in the answer you are not clear about and then I will explain.
If you do not have an answer because you have been given the question as an assignment, then we obviously do not do the homework for you 🙂
What you have done seems OK except that you have not brought in the packaging costs.
I work through plenty of numerical examples in my free lectures for Paper MA.
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