Kw Eto Sheep (KES) Co operates several businesses based around sheepfarming KES Co has a herd of around 5,000 sheep at any one time. In addition toseling lambs and adult sheep at market, KES Co uses the wool removed from lambsand sheep at shearing time to produce a variety of woollen products which are soldin December 20X5, KES Co's flock of sheep is sheared to produce an inventory offleece. The cost of shearing is $4 per sheep which generates one fleece. Had thefleece been sold on the open market at this date, the sales price would be $9 perfleece and selling costs of $1 per fleece would be payable.At 31 December 20X5, KES Co had 3,700 completed wool cardigans in inventory During the year ended31 December 20X5, the wool products division incurred overheads as followsFixed production overheadsVariable production overheadsSelling overheads (pre-paid)Total overheads120,000132,000109.500361,500KES Co absorbs overheads on the basis of the number of units produced which, during 20X5was 42,000 cardigans.What is the total amount of overhead that should be included in the value of KES Co's inventoryof cardigans as at 31 December 20X5?

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At 31 December 20X5, KES Co had 3,700 completed wool cardigans in inventory During the year ended 31 December 20X5, the wool products division incurred overheads as follows Fixed production overheads Variable production overheads Selling overheads (pre-paid) Total overheads $ 120,000 132.000 109.500 361,500 KES Co absorbs overheads on the basis of the number of units produced which, during 20X5 was 42,000 cardigans. What is the total amount of overhead that should be included in the value of KES Co's inventory of cardigans as at 31 December 20X5?

At 31 December 20X5, KES Co had 3,700 completed wool cardigans in inventory During the year ended 31 December 20X5, the wool products division incurred overheads as follows Fixed production overheads Variable production overheads Selling overheads (pre-paid) Total overheads $ 120,000 132.000 109.500 361,500 KES Co absorbs overheads on the basis of the number of units produced which, during 20X5 was 42,000 cardigans. What is the total amount of overhead that should be included in the value of KES Co's inventory of cardigans as at 31 December 20X5?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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