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    DiamonHead's Avatar
    DiamonHead Posts: 3, Reputation: 1
    New Member

    Mar 23, 2013, 10:00 PM
    A transportation company provides bussing, limo, and taxi services.

    Please help with the question below:

    A transportation company provides bussing, limo, and taxi services. The company charges: $350 per day for bussing services, $2.00 per kilometer for taxi services, and $3.50 per kilometer for limo services. Two individual clients, the school board and the city government offices use the majority of the limo service on a contract agreement. Bussing services are used exclusively by the school board, and the taxi services is used almost exclusively by the general public, although the school board uses the taxi services when individual students have to be transported on occasion. Indirect costs are accumulated on internal records at $1.50 per kilometer for limo use and $1.00 per kilometer for taxi use, and $195 per day for each of the twenty buses.

    Client Limo KM Taxi KM Average Days/Bus
    School board 360 90 19
    City gov't 1,943 125 N.A.

    Required: Compute the billing to each major client for the month.

    Please provide calculation because I will like to compare to my own.

    Much thanks

    Fidget1's Avatar
    Fidget1 Posts: 105, Reputation: 4
    Junior Member

    Mar 24, 2013, 10:13 AM
    How about you providing us with your solution and we tell you if you're correct?
    DiamonHead's Avatar
    DiamonHead Posts: 3, Reputation: 1
    New Member

    Mar 24, 2013, 06:31 PM
    Thanks a million for your response but think I was successful in find the answer. However, it should be 134,400 and 7050.

    Anyway here is another one that have me going.

    Oil Company manufactures cooking oils. All direct materials are added at the beginning
    Of the production process. The company currently uses the FIFO method. Data for the month of July are listed below.

    Production data:
    Beginning Work in progress 100,000 units
    Units started during the period 200,000 units
    Completed and transferred out 270,000 units

    Manufacturing cost:
    Beginning Work in progress 176,000
    Direct materials used 244,000

    What is the amount of goods transferred out during the month assuming no labour or conversion costs?

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