A new subsidiary company ABC Limited was established for the manufacture and sales of computers. The project…

Question

A new subsidiary company ABC Limited was established for the manufacture and sales of computers. The project provides for the manufacture and sales of N20,000 computers per month, the unit standard cost of N(1,200) to be made up as follows: Direct materials N500

ScanSolve AI Tutor · Accepted Answer

The question provided is incomplete. However, based on the visible information, we can calculate the total direct materials cost for the month. We will assume that "N20,000 computers per month" refers to 20,000 units of computers per month.

Identify the given information.
- Number of units to be manufactured and sold per month = 20,000 units
- Direct materials cost per unit = $\text{N}500$
Calculate the total direct materials cost for the month.
Total direct materials cost = Number of units $\times$ Direct materials cost per unit
$\text{Total direct materials cost} = 20,000 \text{ units} \times \text{N}500/\text{unit}$ $\text{Total direct materials cost} = \text{N}10,000,000$
The total direct materials cost for the month is $\text{N}10,000,000$ .

A new subsidiary company ABC Limited was established for the manufacture and sales of computers. The project provides for the manufacture and sales of N20,000 computers per month, the unit standard cost of N(1,200) to be made up as follows: Direct materials N500

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Step-by-step solution

Identify the given information.

Calculate the total direct materials cost for the month.

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