Question 5Kukrudu Co. Ltd produces three modules of a product namely Hwentsia (H), Prekese (P) andKakaduro (K).The following data related to the products for the period.НKTotalGH¢ 000 GH¢ 000GH¢ 000 GH¢°000Direct Material24020015014.459092.4Direct Labour Cost2454OverheadsMachine settingsOverhead ProcessingWarehouse Cost266493Energy to run machineShippingA consultant, Mr. P. S. Initiative recommended the following after a detailed study of thecompany's production process.4236АСTIVITYCOST DRIVERACTIVITY LEVELHKa. Machine setupb. Sales order processingc. Warehouse costd. Energye. ShippingIt is the policy of the Kukrudu Co. Ltd. to make a profit margin of 25% on its products.Required:Calculate the selling price of each of the three (3) productsNo. of Production runs223444No. of sales received600200600400400No of units held in inventory200Machine Hours10,00016,00024,000No. of Units shipped1000400010,000(all calculations should be to the nearest Ghana cedi).

Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Question 5 Kukrudu Co. Ltd produces three modules of a product namely Hwentsia (H), Prekese (P) and Kakaduro (K). The following data related to the products for the period. H K P Total GH¢ 000 GH¢ 000 GH¢ 000 GH¢ 000 150 14.4 Direct Material 240 200 590 Direct Labour Cost 24 54 92.4 Overheads Machine settings Overhead Processing Warehouse Cost 26 64 93 42 Energy to run machine Shipping A consultant, Mr. P. S. Initiative recommended the following after a detailed study of the company's production process. 36 ACTIVITY COST DRIVER ACTIVITY LEVEL H K a. Machine setup b. Sales order processing c. Warehouse cost d. Energy e. Shipping It is the policy of the Kukrudu Co. Ltd. to make a profit margin of 25% on its products. Required: Calculate the selling price of each of the three (3) products No. of Production runs 22 34 600 44 No. of sales received 600 400 200 No of units held in inventory 200 400 Machine Hours 10,000 16,000 4000 24,000 10,000 No. of Units shipped 1000 (all calculations should be to the nearest Ghana cedi).

Question 5 Kukrudu Co. Ltd produces three modules of a product namely Hwentsia (H), Prekese (P) and Kakaduro (K). The following data related to the products for the period. H K P Total GH¢ 000 GH¢ 000 GH¢ 000 GH¢ 000 150 14.4 Direct Material 240 200 590 Direct Labour Cost 24 54 92.4 Overheads Machine settings Overhead Processing Warehouse Cost 26 64 93 42 Energy to run machine Shipping A consultant, Mr. P. S. Initiative recommended the following after a detailed study of the company's production process. 36 ACTIVITY COST DRIVER ACTIVITY LEVEL H K a. Machine setup b. Sales order processing c. Warehouse cost d. Energy e. Shipping It is the policy of the Kukrudu Co. Ltd. to make a profit margin of 25% on its products. Required: Calculate the selling price of each of the three (3) products No. of Production runs 22 34 600 44 No. of sales received 600 400 200 No of units held in inventory 200 400 Machine Hours 10,000 16,000 4000 24,000 10,000 No. of Units shipped 1000 (all calculations should be to the nearest Ghana cedi).

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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