Question
As at the 1/1/2004 stock of finished goods at market value GHS 4200 (in units 300 transferred at cost plus 20%) during the year unit
As at the 1/1/2004 stock of finished goods at market value GHS 4200 (in units 300 transferred at cost plus 20%) during the year unit started were 4000 but completed units were 3800 and were transferred to warehouse at cost plus 20%. Total direct cost and total indirect cost on all the 4000 units at production centers were GHS85, 000 and GHS45,000 respectively. Opening stock of work-in-progress was 400 units valued at the factory cost of GHS6, 000, and the value of the work-in-progress at the close of the year was GHS2000.unit sold during the year was 3300 respectively. You are required to determine the following: a. Total factory cost for the period b. Net factory cost of the period c. The factory cost of i. Opening stock of finished goods ii. Sales of finished goods iii. Closing stock of finished goods d. Market value of i. Opening stock of finished goods ii. Sales of finished goods iii. Closing stock of finished goods e. Manufacturing profit i. Total Manufacturing profit realized during the period ii. Total Manufacturing profit created during the period iii. Total Manufacturing profit created during the period and realized f. Closing stock of finished goods to be reported in the balance sheet g. Provision for unrealized profit i. On opening stock of finished goods ii. On closing stock of finished goods iii. The net provision for unrealized profit 2. During the year 2004, cosmetics department transferred goods to footwear department at selling price of GHS3000. The firm sells stock at cost plus profit of 25% a. State the cost of the goods to i. Cosmetics department ii. Footwear department b. State the profit on the goods to i. Cosmetics department ii. Footwear departmen
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