Pass-Well Company Limited produces a product that passes through two processes, Process 1 and

Process 2. Details of activities for the month of December, 2020 is as follows;

Process 1 Material introduced (4,000 units) @GH200.00	Process 2
Material added	GH25,000.00
Labour Costs (@GH400 per hour) 200hrs	600hrs
Output in units 3,500units	3,150units
Scrap value of normal loss GH20 per unit Note; Overhead is absorbed at 80% of labour costs. Normal loss is estimated at 10% for both process. iii. No opening and closing stocks	GH40 per unit
a. You are required to prepare the relevant accounts	(12 marks)

b. You are required to prepare the relevant Accounts With practical example, differentiate between cost assignment and cost apportionment; product cost and period costs; direct

cost and indirect cost (8 marks)

TOTAL: 20 MARKS

Question Three

Kind Gestures Company is a leading producer of Akohia Soap in the Eastern Region of Ghana. The following information relate to a component part used in manufacturing Akohia Soap for the period ended 31^st August, 2020.

			Units	Total Cost (GH)
Stock on hand at January 1, 2020 Purchases made during the period;			2,000	100,000
January			4,000	200,000
March			3,000	180,000
May			8,000	640,000
July Issues made during the period;			2,000	100,000
February			5,000
April			1,000
June			1,800
August			2,500

Required;

1. Using the Last-in-first-out method, prepare the Store Ledger Account for the period ended

31^st August, 2020. (11 marks)

2. One of the key methods of inventory control in modern times is the just-in-time system, list and explain 3 benefits of this system to a manufacturing company in Ghana. (6 marks)
3. Explain three (3) importance of Job Costing. (3 marks)