The following information relates to Josma ltd for the month of July 2020.The company uses single/unit costing method. The company expects to produce 1,000 units during the month of July 2020 Additional Information: 1. Some products had some defects which required additional work being carried out in the factory to correct these defects. The cost of correcting these defective products was Shs 250,000. 2. The was a by-product that resulted from the production which was sold generating cash amounting to Shs 480,000 Required:
The following information relates to Josma ltd for the month of July 2020.The company uses
single/unit costing method. The company expects to produce 1,000 units during the month of
July 2020
Additional Information:
1. Some products had some defects which required additional work being carried out in the
factory to correct these defects. The cost of correcting these defective products was Shs
250,000.
2. The was a by-product that resulted from the production which was sold generating cash
amounting to Shs 480,000
Required:
i) Prepare a cost sheet for the company using the single/unit costing method. The cost sheet
should indicate all the totals for all major categories of costs including (Prime Cost;
Works/
ii) Calculate the
the projected revenue is 96,000,000
![SHS
Opening stock (as at 1* July 2020)
Raw materials
26,000,000
Finished goods
Work in Progress
18,300,000
9,200,000
Closing stock (as at 31st July 2020)
Raw materials
27,200,000
Finished goods
Work in Progress
16,700,000
10,100,000
Page 3 of 4
Additional Cost Information:
Purchase of Raw materials
23,000,000
Carriage on purchases
Direct wages
Factory Supervisor wages
Depreciation cost for Factory machines
Factory Utility expenses
Factory overheads
1,500,000
18,500,000
1,000,000
2,000,000
2,200,000
7,500,000
4,000,000
Administration Overheads
Selling and Distribution Overheads
5,200,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3524451-fcef-48e4-a310-673d9d07023c%2Fed90d696-808c-4bed-8944-e85e81eb339c%2F64jd0wp_processed.jpeg&w=3840&q=75)
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