Nalo Ltd produces chilli sauce which passes through three processes. The information provided below relate to the final process for the month ended 30 June 2017 Input materials 3,000 litres @ K50/litre Added materials K215,000 Labour costs -Direct 4,000 hrs @K30/hr -Indirect 6,000 hrs @K50/hr Overheads absorbed @K40/direct hr Output for the month was 2,800 litres Normal loss is set at 10% of input materials. 1.prepare the process account for the month of june. 2.prepare trading account if 2,500 litres were sold at K400 per litre (assuming there were 300 units opening inventories at K300 each)
Nalo Ltd produces chilli sauce which passes through three processes. The information provided below relate to the final process for the month ended 30 June 2017 Input materials 3,000 litres @ K50/litre Added materials K215,000 Labour costs -Direct 4,000 hrs @K30/hr -Indirect 6,000 hrs @K50/hr Overheads absorbed @K40/direct hr Output for the month was 2,800 litres Normal loss is set at 10% of input materials. 1.prepare the process account for the month of june. 2.prepare trading account if 2,500 litres were sold at K400 per litre (assuming there were 300 units opening inventories at K300 each)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Nalo Ltd produces chilli sauce which passes through three processes. The information provided below relate to the final process for the month ended 30 June 2017
Input materials 3,000 litres @ K50/litre
Added materials K215,000
Labour costs -Direct 4,000 hrs @K30/hr
-Indirect 6,000 hrs @K50/hr
Output for the month was 2,800 litres
Normal loss is set at 10% of input materials.
1.prepare the process account for the month of june.
2.prepare trading account if 2,500 litres were sold at K400 per litre (assuming there were 300 units opening inventories at K300 each)
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education