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متابعة

What would be the value of total factory cost, if the cost of material consumed during the month is Rs. 6,000, labor cost incurred is Rs. 2,000

and the factory over head cost is Rs.2,500?

A)  Rs.6,000

B)  Rs.4,500

C)  Rs.8,000

D)  Rs.10,500

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تم إضافة السؤال من قبل Shazia Anees , Assistant Manager Finance , Arham Trading Company
تاريخ النشر: 2015/06/11
Shahbaz Hayder
من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option D is the right answer.

Bilal Bilal Ashraf
من قبل Bilal Bilal Ashraf , Assistant Accountant and Office Admin , Hamdaani Food Company

option D will be answer Rs.10,500

Sadiq ul Islam
من قبل Sadiq ul Islam , Financial Controller , BinDawood Holding Company (BDH)

 

Factory Cost refers to total cost of making a product at factory that comprising of raw material, labor, and overhead costs.

 

Therefore it leads to option D10500

 

Shaikh Muhammad  Yousuf
من قبل Shaikh Muhammad Yousuf , Manager Accounts , Al Wahdania Group of Companies

total factory cost is

D)  Rs.10,500

Muhammad Ramzan Tufail  ACCA
من قبل Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

D)10,500.....................................

Wasim khan wazir
من قبل Wasim khan wazir , Finance Specialist , Mott Macdonald

Total Factory Cost = Direct Material + Direct Labor + Manufacturing Overhead

Total Factory Cost =6000+2000+2500 =10500

Option D