Reference no: EM132386444
Question
Dedaun provides the following production cost information for Department A and Department B for the year 2019:
Department A Department B
Machine hour (hour) 17,800 23,400
Direct labour cost (RM) 13,000 25,000
Factory overhead cost (RM) 115,700 351,000
Department A uses machine hour as basis whereas Department B uses direct labour cost as basis.
Based on the given information, calculate the unit cost rate for Department A and Department B.
Prepare journal entries to record the following transactions:
Material used RM80,750 for direct materials orders
RM4,350 for indirect materials orders
Labour utilised RM69,900 for factory operations
RM4,500 for administration operations
Overhead factory costs incurred (on credit) RM26,000
The finished products are transferred to the warehouse RM48,780