Case study 2
Zubi Pty Ltd prepared a summary showing the following expected
costs for a production level of 50,000 units:
Fixed manufacturing overhead
Fixed selling and administration
Variable manufacturing overhead
Zubi Pty Ltd accounts for all manufacturing costs as inventoriable (product) costs.
Calculate the following TOTAL costs:
a. Conversion cost
b. Product cost
c. Prime cost
d. Period cost
e. Expected manufacturing overhead cost for a production level of 60,000 units.