QUESTION FOUR

(a) The following transactions were recorded from the records of Hameeda Company Ltd.

GH

Interest on debenture 2,400

Agents commission 13,500

Office salaries 2,260

Rent, rate and insurance warehouse 620

Rent, rate and insurance office 460

Warehouse wages 3,600

Warehouse repairs 3,000

Trade magazines 140

Bad debts 600

Lighting of office 140

Cash discount allowed 1,540

Donations 300

Bank charges 200

Lighting of warehouse 540

Printing and stationery 3,000

Directors remuneration 2,800

Travelling expenses of salesmen 3,520

From the above prepare a cost statement showing the total;

i. Selling expenses

ii. Factory expenses

iii. Administrative expenses

iv. Financial expenses

(b) Briefly explain the classification of costs according to;

i. Behaviour

ii. Function

iii. Nature

iv. Control

v. Production