Question $2$

of the entity for the year ended $\frac{31}{12}\frac{?}{2022}.$

$\frac{31}{12}\frac{?}{21}$

$GHC$

$16,373$

$1,200$

$2,500$

Additional note:

Insurance paid in advance is $GHC450$ and it is to be apportioned $65\%$ to factory and the rest to

admin. The resulting goods produced above were all transferred to the trading department at cost$.$

Sales is $200\%$ the cost of goods sold. Apportion depreciation in the ratio $\frac{3}{10}$ for admin and $\frac{7}{10}$

to factory.

Required: Prepare

i$.$ The cost of production for the year ended $\frac{31}{12}\frac{?}{2022}$

ii$.$ The gross profit for the year ending $\frac{31}{12}\frac{?}{2022}$