Answer Happy

The Modern Resources Company uses the production order costs system, and the company had an order under operation on 12/31/2020, a total cost of 5000 riyals, of which 2000 were direct materials and the rest represented direct labor and indirect industrial costs. The manufacturing of the order was completed on 01/31/2021 and the industrial costs incurred to complete the manufacturing of the order (during the 1st month of 2021) were as follows (12,000 direct materials, 8000 direct labors, 50% of direct labor as indirect industrial costs). Note that the company's policy in general is to charge indirect industrial costs at a rate of 50% of direct work Required: 1. Proof of production order restrictions in 2021 2. Total indirect industrial costs charged to production order in 2020 and 2021