Hon. Ishaq Brobbey and Godfred Opoku are in partnership retailing vehicle exhausts. Hon. Ishaq is responsible for manufacturing the exhausts while Godfred takes charge of the selling and distribution and run the office and General administration. On the whole, the business has been profitable.
However, there is no detailed analysis of costs and efficiency which is a very serious lapse. Now, they have proposed drawing up a manufacturing account and combine this with an
income statement. During the year to 31st December, 2019, Hon. Ishaq and produced and sold many exhausts.
1. Depreciation on plant and Machinery for the year amounted to GHC14,500.
2. Other manufacturing expenses totalled GHC38,500.
3. Light and heating also amounted to GHC29,500.
4. Salesman Commission was GHC23,000.
5. Rent and Rate amounted to GHC115,000
6. General Administration expenses amounted to GHC88,000
The following information were also available:
a. Cost per unit of the raw material was priced at GHC350.
b. Its the policy of the business to transfer goods manufactured to the selling and
distribution unit at cost plus 25%.
c. The rent and rates cover a period of 15 months and should be apportioned as follows;
Factory 40% and Administration 60%.
d. Provision for unrealised profit for the beginning of the year was slated at GHC2,600.
Having being provided with the above information and with your in-depth knowledge in the principles of accounting, youve being invited by these two amazing gentlemen to help them present to their external stakeholders, some of the key information with regards to their Manufacturing accounts.
You are required to determine;
a. The total cost of Direct Raw Materials.
b. The total Factory overheads
c. The Total Direct Cost with the production of exhausts.
d. The Total Cost of Production
e. The manufacturing profit
f. The market Value
g. Increase or Decrease in the Provision for Unrealised profit.
Kindly submit your sent to this mail.com Coping and duplicating work is tantamento cancellation Late submision will not be tolerated. Thank you! OLESTIONI Hon. Ishaq Beatbey and Godfred Opaku are in partnership retailing chickets Hon Ishaq is responsible for manufacturing the exhaus while God is charge of the selling and distribution and run the office and Generalinis sewake. the business has been profitable However, there is no detailed analysis of costs and efficimy which is a very spe Now, they have proposed during up a manufacturing and combined with income statement. During the year to 31 December, 2019. Hoe. Ishagaad Gedified have produced and will many cha The following information thered at the end of the years Number of raw materials purchased Carriage on Raw GHC3.000 Number of Raw materials that were not in good shape for production Cest of physical efforts redestein of the exhaus Cost of development expenditure incurred on productie Inventory whedule GHC Raw Materials West-In-Progress Se Finished Goods 1. Depreciation en plant and Machinery for the year amounted HC14.500 2. Other manufacturing expenses filled GC38.500 2. Light and heating also amounted to GHC29.500. Sale Comisia GRC 5. Rent and Rate amounted GHC115,000 General Administinexpenses moto GHC,000 The following information were also wilde a Cost per unit of the raw material priced GC350 Ie's the policy of the use of good manufactured to the dig und distribution unit tout plus 25% The rent and rates over a period of 15 months and should be appetioned as follows Faclay 4175 ind Alminin % Provision for realised profit for the beginning of the year wald GHIC2.00 Harving being provided with the above information and with your in-depth knowledge in the principles of accounting, you've being invited by these two imp them present to their external stakeholder some of the key information with a the Manufacturing accounts Yes are required to determine The wall cost of Direct Raw Materials The Factory overde The Total Direct Cost with the production of shouts. & The Total Cost of Praction The manufacturing profil The market value Increase or decrease in the Provision for Unclined prots The following information was gathered at the end of the year; Number of Raw materials purchased Carriage on Raw materials Number of Raw materials that were not in good shape for production Cost of physical efforts exerted on the production of the exhausts Cost of development expenditure incurred on production 1,500 units GHC3,000 325 units GHC80,000 GHC20,000 Page 1 of 2 Inventory schedule Raw Materials Work-In-Progress Finished Goods 19 January, 2019 GHC 25,000 15,000 13,000 31st December,2019 GHC 30,000 5,000 12,000 Kindly submit your sent to this mail.com Coping and duplicating work is tantamento cancellation Late submision will not be tolerated. Thank you! OLESTIONI Hon. Ishaq Beatbey and Godfred Opaku are in partnership retailing chickets Hon Ishaq is responsible for manufacturing the exhaus while God is charge of the selling and distribution and run the office and Generalinis sewake. the business has been profitable However, there is no detailed analysis of costs and efficimy which is a very spe Now, they have proposed during up a manufacturing and combined with income statement. During the year to 31 December, 2019. Hoe. Ishagaad Gedified have produced and will many cha The following information thered at the end of the years Number of raw materials purchased Carriage on Raw GHC3.000 Number of Raw materials that were not in good shape for production Cest of physical efforts redestein of the exhaus Cost of development expenditure incurred on productie Inventory whedule GHC Raw Materials West-In-Progress Se Finished Goods 1. Depreciation en plant and Machinery for the year amounted HC14.500 2. Other manufacturing expenses filled GC38.500 2. Light and heating also amounted to GHC29.500. Sale Comisia GRC 5. Rent and Rate amounted GHC115,000 General Administinexpenses moto GHC,000 The following information were also wilde a Cost per unit of the raw material priced GC350 Ie's the policy of the use of good manufactured to the dig und distribution unit tout plus 25% The rent and rates over a period of 15 months and should be appetioned as follows Faclay 4175 ind Alminin % Provision for realised profit for the beginning of the year wald GHIC2.00 Harving being provided with the above information and with your in-depth knowledge in the principles of accounting, you've being invited by these two imp them present to their external stakeholder some of the key information with a the Manufacturing accounts Yes are required to determine The wall cost of Direct Raw Materials The Factory overde The Total Direct Cost with the production of shouts. & The Total Cost of Praction The manufacturing profil The market value Increase or decrease in the Provision for Unclined prots The following information was gathered at the end of the year; Number of Raw materials purchased Carriage on Raw materials Number of Raw materials that were not in good shape for production Cost of physical efforts exerted on the production of the exhausts Cost of development expenditure incurred on production 1,500 units GHC3,000 325 units GHC80,000 GHC20,000 Page 1 of 2 Inventory schedule Raw Materials Work-In-Progress Finished Goods 19 January, 2019 GHC 25,000 15,000 13,000 31st December,2019 GHC 30,000 5,000 12,000
