its price list. The most popular requirement is for a folded leaflet made from a single sheet of A4 paper. From past records and budgeted figures, the following data have been estimated for a typical batch of 12,000 leaflets. Artwork GH¢ 130 Machine setting 8 hours at GH¢ 44 per hour Paper GH¢ 25 per 2,000 sheets Ink and consumables GH¢ 40 Printers wages 8 hours at GH¢ 16 per hour General fixed overheads are GH¢ 30,000 per period during which a total of 600 labour hours are expected to be worked. The firm wishes to achieve 30% profit on sales. Required i. Calculate the bato cost i. Calculate the selling price per thousand leaflets for quantities of 12,000 and 24,000 leaflets. ii. Calculate the profit for the period if 64 batches of 12,000 and 36 batches of 24,000 were sold and costs and revenues were as budgeted.

its price list. The most popular requirement is for a folded leaflet made from a single sheet of A4 paper. From past records and budgeted figures, the following data have been estimated for a typical batch of 12,000 leaflets. Artwork GH¢ 130 Machine setting 8 hours at GH¢ 44 per hour Paper GH¢ 25 per 2,000 sheets Ink and consumables GH¢ 40 Printers wages 8 hours at GH¢ 16 per hour General fixed overheads are GH¢ 30,000 per period during which a total of 600 labour hours are expected to be worked. The firm wishes to achieve 30% profit on sales. Required i. Calculate the bato cost i. Calculate the selling price per thousand leaflets for quantities of 12,000 and 24,000 leaflets. ii. Calculate the profit for the period if 64 batches of 12,000 and 36 batches of 24,000 were sold and costs and revenues were as budgeted.

Name: 1. A company specialises in printing advertising leaflets and is in-t
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Description: 1. A company specialises in printing advertising leaflets and is in-the-process of preparingits price list. The most popular requirement is for a folded leaflet made from a singlesheet of A4 paper. From past records and budgeted figures, the followi

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

1. A company specialises in printing advertising leaflets and is in-the-process of preparing
its price list. The most popular requirement is for a folded leaflet made from a single
sheet of A4 paper. From past records and budgeted figures, the following data have
been estimated for a typical batch of 12,000 leaflets.
Artwork GH¢ 130
Machine setting 8 hours at GH¢ 44 per hour
Paper GH¢ 25 per 2,000 sheets
Ink and consumables GH¢ 40
Printers wages 8 hours at GH¢ 16 per hour
General fixed overheads are GH¢ 30,000 per period during which a total of 600 labour
hours
are expected to be worked.
The firm wishes to achieve 30% profit on sales.
Required
i.
Calculate the batch cost
i.
Calculate the selling price per thousand leaflets for quantities of 12,000 and 24,000
leaflets.
İi.
Calculate the profit for the period if 64 batches of 12,000 and 36 batches of 24,000
were sold and costs and revenues were as budgeted.

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