(b) P Ltd produces a certain food item in a manufacturing process. During Dec 2021, 500 units of material were input to process, with a cost of Kshs 9,000.Direct labour cost for the month was Kshs.3,840.Production overhead is absorbed at rate of 200%of direct labour cost. Closing WIP in the month were 100 units. These were 80% complete. There was no loss during the process. Required. (i) Determine the unit cost of an item. (ii) Determine the full production cost of completed units during the month of Dec.2021 (iii) Determine the value of w-i-p as at 31st December 2021

(b) P Ltd produces a certain food item in a manufacturing process. During Dec 2021, 500 units of material were input to process, with a cost of Kshs 9,000.Direct labour cost for the month was Kshs.3,840.Production overhead is absorbed at rate of 200%of direct labour cost. Closing WIP in the month were 100 units. These were 80% complete. There was no loss during the process. Required. (i) Determine the unit cost of an item. (ii) Determine the full production cost of completed units during the month of Dec.2021 (iii) Determine the value of w-i-p as at 31st December 2021

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 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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