Question One God-Is-Good Company produces a single product, the following figures were extracted from their records for the year ended December 31, 2020. Units in beginning inventory:direct material (1,000 units) - GH¢30.00: direct labour. - GH¢65.00 variable overhead. - GH¢35.00 Fixed overheard. - GH¢32.00 Units produced. - 12,500 units units sold(10,000 units) - GH¢425.00 per unit. Variable costs per unit: Direct materials - GH¢50.00 Direct Labour. - GH¢100.00 Variable Overheard. - GH¢60.00 Fixed overheard per unit produced. - GH¢25.00 General and administrative cost (60% variable). - 525,350.00 Selling and distribution cost(40% fixed) - 315,500.00 a. Prepare an Income Statement for God-Is-Good Company using the full costing approach. b. Prepare an Income Statement for God-Is-Good Company using variable costing approach. c. Prepare the Reconciliation Statement . d. One important aspect of overall material management is the inventory control. Required; discuss the two problems associated with inventory control.
Question One God-Is-Good Company produces a single product, the following figures were extracted from their records for the year ended December 31, 2020. Units in beginning inventory:direct material (1,000 units) - GH¢30.00: direct labour. - GH¢65.00 variable overhead. - GH¢35.00 Fixed overheard. - GH¢32.00 Units produced. - 12,500 units units sold(10,000 units) - GH¢425.00 per unit. Variable costs per unit: Direct materials - GH¢50.00 Direct Labour. - GH¢100.00 Variable Overheard. - GH¢60.00 Fixed overheard per unit produced. - GH¢25.00 General and administrative cost (60% variable). - 525,350.00 Selling and distribution cost(40% fixed) - 315,500.00 a. Prepare an Income Statement for God-Is-Good Company using the full costing approach. b. Prepare an Income Statement for God-Is-Good Company using variable costing approach. c. Prepare the Reconciliation Statement . d. One important aspect of overall material management is the inventory control. Required; discuss the two problems associated with inventory control.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question One
God-Is-Good Company produces a single product, the following figures were extracted from their records for the year ended December 31, 2020.
Units in beginning inventory:direct material (1,000 units) - GH¢30.00: direct labour. - GH¢65.00 variable overhead . - GH¢35.00 Fixed overheard. - GH¢32.00
Units produced. - 12,500 units units sold(10,000 units) - GH¢425.00 per unit.
Variable costs per unit:
Direct materials - GH¢50.00 Direct Labour. - GH¢100.00 Variable Overheard. - GH¢60.00 Fixed overheard per unit produced. - GH¢25.00
General and administrative cost (60% variable). - 525,350.00
Selling and distribution cost(40% fixed) - 315,500.00
a. Prepare an Income Statement for God-Is-Good Company using the full costing approach.
b. Prepare an Income Statement for God-Is-Good Company using variable costing approach.
c. Prepare the Reconciliation Statement .
d. One important aspect of overall material management is the inventory control. Required; discuss the two problems associated with inventory control.
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