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	2,000	100,000
Purchases made during the period;
January	4,000	200,000
March	3,000	180,000
May	8,000	640,000
July	2,000	100,000
Issues made during the period;
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)

c. Explain three (3) importance of Job Costing. (3 marks)