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)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 23E: Orinder Company provided the following information for the last calendar year: During the year,...
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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)
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