The Adonkoko Co Ltd a medium sized company produces single product in its overseas factory. For control purposes, a standard costing system was recently introduced and it's now in operation. The standards set for the month of May were as follows: Production and sales 16,000 units. Selling price (per unit) GHC140 Materials: X 6 kilos per unit at GHC12.25 per kilo Y 3 kilos per unit at GHC3.20 per kilo. Labour: 4.5 hours per unit at GHC8.40 per hour. Overheads (all fixed) is GHC86,400 per month. They are not absorbed into the product costs. The actual data for month of May is as follows. Produced 15,400 units which were sold at GHC138.25 each. Materials: Used 98,560 kilos of material X at a total cost of GHC1,256,640 and used 42,350 kilos of material Y at a total cost of GHC132,979 Labour: Paid an actual rate of GHC 8.65 per hour to the Labour force. The total amount paid out amounted to GHC612,766. Overheads (all fixed) = GHC 96,840

The Adonkoko Co Ltd a medium sized company produces single product in its overseas factory. For control purposes, a standard costing system was recently introduced and it's now in operation. The standards set for the month of May were as follows: Production and sales 16,000 units. Selling price (per unit) GHC140 Materials: X 6 kilos per unit at GHC12.25 per kilo Y 3 kilos per unit at GHC3.20 per kilo. Labour: 4.5 hours per unit at GHC8.40 per hour. Overheads (all fixed) is GHC86,400 per month. They are not absorbed into the product costs. The actual data for month of May is as follows. Produced 15,400 units which were sold at GHC138.25 each. Materials: Used 98,560 kilos of material X at a total cost of GHC1,256,640 and used 42,350 kilos of material Y at a total cost of GHC132,979 Labour: Paid an actual rate of GHC 8.65 per hour to the Labour force. The total amount paid out amounted to GHC612,766. Overheads (all fixed) = GHC 96,840

Name: Required:(i) Prepare a standard costing profit statement, and a profit
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Description: Required:(i) Prepare a standard costing profit statement, and a profit statement based on actual figures for the month of May. (ii) Prepare a statement of the variances which reconciles the actual with the standard profit or loss figure. The Adonkoko

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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Complete the standard cost variance analysis
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