Problem
The following information was obtained from the records of Milena Company for the year ended December2013:
|
RM
|
|
Advertising Expense
|
215,000
|
|
Insurance on Factory Equipment
|
8,000
|
|
Depreciation of Sales Equipment
|
40,000
|
|
Factory Rental
|
90,000
|
|
Factory Utilities
|
52,000
|
|
SalesCommissions
|
35,000
|
|
Factory Cleaning Supplies
|
6,000
|
|
Depreciation of Factory Equipment
|
110,000
|
|
Marketing and Administration Salaries
|
85,000
|
|
Factory Maintenance
|
74,000
|
|
Direct Labor
|
?
|
|
Purchase of Raw Materials
|
260,000
|
The balance of inventory at the beginning and ended of year 2013 are as follows:
|
|
1 January
|
31 December
|
|
Raw Materials
|
RM50,000
|
RM40,000
|
|
Work in Process
|
RM ?
|
RM33,000
|
|
Finished Goods
|
RM30,000
|
RM ?
|
Total cost of goodsmanufactured for the year 2013 is RM675,000. Cost of goods available for sale is RM720,000 while cost of goods sold is RM635,000.
• How to calculate the work in process opening amount company for the year ended 2013.