Exercise 2 BLIBO Company manufactures two products NAKA and NAKO. The Statement of Financial Position BLIBO for the year ended December 31, 2017 is given below BLIBO Statement of Financial Position as at December 31, 2017 GHC 150,000 225,000 GHC Equity capital Income surplus Fixed assets: Plant & machinery Current assets: 300,000 24,000 Lad& building 50,000 L: Provision for dep. 75,000 12,000 15,000 Finished goods 300,000 5% Loan stock Current liabilities: Raw material 28,000 60,000 22,500 Company tax Debtors Bank 15 The cost accountant has provided the following information for 2018: 1 Forecast sales Selling price per unit Sales units NAKA GHC45 6,000 NAKO GHC60 6,000 NAKO 6kgs 1.5hours 2. Standard product content NAKA 3kgs 1.5kgs 3 hours Material Eve Material 'Adam Direct Department A DepartmentB 5 hours 15 hors 3. Unit costs and hourly rates for 2018 are expected to be Material Eve Material Adam Direct Labour - Department A GHC4.5 per kilogram GHc1.5 per kilogram GHC3.0 per hour GHC4.5 per hour