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# 1 NuWay Inc.

## Schedule of Cost of Goods Manufactured

For the Month Ended October 31, 2010 (12,000 Units)

## Direct Materials 180,000

Direct Labours 72,000
Total Manufacturing Cost 383,000
405,000
Less: WIP, Ending 15,000
Cosf of Goods Manufactured 390,000

NuWay Inc.
Schedule of Cost of Goods Manufactured
For the Month Ended July 31, 2010 (9,000 Units)

## Direct Materials 135,000

Direct Labours 54,000
Total Manufacturing Cost 296,000
310,000
Less: WIP, Ending 25,000
Cosf of Goods Manufactured 285,000

## 2 Month No. of units produced Manf. Overhead Cost

High Activity Level 12,000 131,000
Low Activity Level 9,000 107,000
Change 3,000 24,000

Change in Cost
Variable Cost =
Change in Activity
24,000
=
3,000
= (\$8 per unit Produced )

## Fixed Cost Element = Total Cost - Variable Cost Element

= \$131,000- (\$8 per unit X 12,000 units produced)
= 35,000

## The Cost Formula is Y = \$35,000 + \$8X

3 NuWay Inc.
Schedule of Cost of Goods Manufactured
For the Month Ended (9,500 Units)

## Direct Materials 142,500

Direct Labours 57,000
Total Manufacturing Cost 310,500
326,500
Less: WIP, Ending 19,000
Cosf of Goods Manufactured 307,500
Month No. of units produced Manf. Overhead Cost
High Activity Level 12,000 131,000
Low Activity Level 9,000 107,000
Change 3,000 24,000

Change in Cost
Variable Cost =
Change in Activity
24,000
=
3,000
= (\$8 per unit Produced )

## Fixed Cost Element= Total Cost - Variable Cost Element

= \$131,000- (\$8 per unit X 12,000 units produced)
= 35,000

## The Cost Formula is Y= \$35,000 + \$8X

NuWay Inc.
Schedule of Cost of Goods Manufactured
For the Month Ended (9,500 Units)

## Direct Materials 142,500

Direct Labours 57,000