An organization specializes in manufacturing wooden wardrobes. It gives its customers a choice of woods including teak wood, satin wood, Sal wood, Indian rosewood etc. For the purpose of ascertainment of total cost, which costing system needs to be implemented?

Question

Quizplus · Accepted Answer

This question requires familiarity with operation costing. To calculate the total cost assigned to each kind of jeans in the batch, calculate the total cost of each type of jeans within the batch. Acid Wash Jeans: ($1.42 × 2,000) + ($1.31 × 2,000) + ($0.48 × 2,000) + ($1.09 × 2,000) + ($1.00 × 2,000) = $2,840 + $2,620 + $960 + $2,180 + $2,000 = $10,600. Sand Blasted Jeans: ($1.42 × 2,280) + ($1.31 × 2,280) + ($0.52 × 2,280) + ($1.09 × 2,280) + ($1.00 × 2,280) = $3,237.60 + $2,986.80 + $1,185.60 + $2,485.20 + $2,280 = $12,175.20 = $12,175.

An Organization Specializes in Manufacturing Wooden Wardrobes