e)

Statement of Cost Goods Manufacture

$
Direct Labour

$
7800

Factory Overheads:
Indirect materials

450

Factory utilities

330

Factory supervision

4000

Factory depreciation

1600
6380

(-)Under applied O/H

-140

Current manufacturing cost

16290

(+)opening work in process

1750

Total Manufacturing cost

18040

(-) Closing Working in process

-6310

Cost of goods manufactured

11730

f)
Overhead variance:
Actual Overhead = $6,380
Applied Overhead = $6,240
The Overhead is under applied

g)

6240

Statement of Cost of goods sold

Beginning finished goods inventory

1500

Cost of goods manufactured

11730

Goods available for sale

13230

(-) Ending Finished goods inventory

-3680

Normal Cost of goods sold

9550

(+) under applied O/H

140

Adjusted Cost of goods sold

9690

h)
Operating Income for the month ended 31st March
Sales

36000

(-) Cost of goods sold

-9690

Gross Profit

26310

(-)Period Costs
Sales staff wages

2000

Advertising

3000

HQ admin staff wages

5000

Net operating profit

16310