The third question: The Modern Resources Company uses the production order costs system, and the company had an order un

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The Third Question The Modern Resources Company Uses The Production Order Costs System And The Company Had An Order Un 1 (52.99 KiB) Viewed 88 times

The third question: The Modern Resources Company uses the production order costs system, and the company had an order under operation on 12/31/2020, the total cost of 5000 riyals, of which 2000 is direct materials and the rest represents 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 month of 1st 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: Writing the production order entries in 2021 and calculating the total indirect industrial costs charged to the production order in 2020 and 2021