Problem
During November 2022, the Rodríguez company estimates to produce 5 biscuits. Next, the information related to the production of a sponge cake.
2 pounds of flour
Flour cost per pound $2.00
20 egg whites
Cost of one egg white $.50
1 pound of sugar
Cost of ½ pound of sugar $2.00
Electricity 20% of cost of materials
2 hours of work for each cake
Hourly wage $20.00 to employee
a) Determine the cost of making the 5 cupcakes.
b) Make material cost book entry
c) Enter labor in the books
d) Make Indirect Cost of Electricity Entry.