STAY AT HOME Co. Limited is a manufacturing company producing Nose Masks in large quantities. The following balances were extracted from its books on 30th September, 2019. Inventory 01/10/2018 GHC Raw materials 28,800 Work-in-progress 39,000 Finished goods 33,600 Sales (114,000 pieces @ GHC5 each) 570,000 Carriage on raw materials 1,470 General expenses 25,200 Selling expenses 51,840 Plant and Machinery 250,280 Land 50,000 Bank overdraft 32,120 Retained earnings 816 Ordinary share capital 200,000 8% preference share capital 22,000 Good will 40,000 Bad debts 830 Trade receivables 36,433 Discount allowed 1,440 Sundry payables 56,636 Trade investments 8,840 Advertising 2,250 Discount received 1,920 Carriage outwards 2,280 Production wages 126,000 Office salaries 4,860 Purchase of raw materials 168,000 Returns inwards 9,000 Needles 15,000 Factory rent 13,600 Office insurance 40,800 Depreciation of plant and machinery 4,920 Inventory 30/09/2019 Raw materials 35,400 Work-in-progresss 39,120 loose tools 3,000 Additional information i During the year, 129,000 were completed. The closing inventory of finished is valued at the cost price per nose mask produced. ii Goods manufactured during the year are to be transferred to the trading account at GHC390,000. iii Provide for doubtful debts at the rate of 2 ⅟2% of receivables. iv Advertisement was three months prepaid. The cost of goods produced for the period is? What is the cost of production for STAY AT HOME Co. Limited? Determine the manufacturing profit for the business.

STAY AT HOME Co. Limited is a manufacturing company producing Nose Masks in large quantities. The following balances were extracted from its books on 30th September, 2019. Inventory 01/10/2018 GHC Raw materials 28,800 Work-in-progress 39,000 Finished goods 33,600 Sales (114,000 pieces @ GHC5 each) 570,000 Carriage on raw materials 1,470 General expenses 25,200 Selling expenses 51,840 Plant and Machinery 250,280 Land 50,000 Bank overdraft 32,120 Retained earnings 816 Ordinary share capital 200,000 8% preference share capital 22,000 Good will 40,000 Bad debts 830 Trade receivables 36,433 Discount allowed 1,440 Sundry payables 56,636 Trade investments 8,840 Advertising 2,250 Discount received 1,920 Carriage outwards 2,280 Production wages 126,000 Office salaries 4,860 Purchase of raw materials 168,000 Returns inwards 9,000 Needles 15,000 Factory rent 13,600 Office insurance 40,800 Depreciation of plant and machinery 4,920 Inventory 30/09/2019 Raw materials 35,400 Work-in-progresss 39,120 loose tools 3,000 Additional information i During the year, 129,000 were completed. The closing inventory of finished is valued at the cost price per nose mask produced. ii Goods manufactured during the year are to be transferred to the trading account at GHC390,000. iii Provide for doubtful debts at the rate of 2 ⅟2% of receivables. iv Advertisement was three months prepaid. The cost of goods produced for the period is? What is the cost of production for STAY AT HOME Co. Limited? Determine the manufacturing profit for the business.

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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STAY AT HOME Co. Limited is a manufacturing company producing Nose Masks in large quantities. The following balances were extracted from its books on 30th September, 2019.

Inventory 01/10/2018	GHC
Raw materials	28,800
Work-in-progress	39,000
Finished goods	33,600
Sales (114,000 pieces @ GHC5 each)	570,000
Carriage on raw materials	1,470
General expenses	25,200
Selling expenses	51,840
Plant and Machinery	250,280
Land	50,000
Bank overdraft	32,120
Retained earnings	816
Ordinary share capital	200,000
8% preference share capital	22,000
Good will	40,000
Bad debts	830
Trade receivables	36,433
Discount allowed	1,440
Sundry payables	56,636
Trade investments	8,840
Advertising	2,250
Discount received	1,920
Carriage outwards	2,280
Production wages	126,000
Office salaries	4,860
Purchase of raw materials	168,000
Returns inwards	9,000
Needles	15,000
Factory rent	13,600
Office insurance	40,800
Depreciation of plant and machinery	4,920
Inventory 30/09/2019
Raw materials	35,400
Work-in-progresss	39,120
loose tools	3,000

	Additional information
i	During the year, 129,000 were completed. The closing inventory of finished is valued at the cost price per nose mask produced.
ii	Goods manufactured during the year are to be transferred to the trading account at GHC390,000.
iii	Provide for doubtful debts at the rate of 2 ⅟2% of receivables.
iv	Advertisement was three months prepaid.

The cost of goods produced for the period is?

What is the cost of production for STAY AT HOME Co. Limited?

Determine the manufacturing profit for the business.

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