(b) P Ltd produces a certain food item in a manufacturing process. During Dec 2021, 500 units of material were input to process, with a cost of Kshs 9,000.Direct labour cost for the month was Kshs.3,840.Production overhead is absorbed at rate of 200%of direct labour cost. Closing WIP in the month were 100 units. These were 80% complete. There was no loss during the process. Required. (i) Determine the unit cost of an item. (ii) Determine the full production cost of completed units during the month of Dec.2021 (iii) Determine the value of w-i-p as at 31st December 2021

(b) P Ltd produces a certain food item in a manufacturing process. During Dec 2021, 500 units of material were input to process, with a cost of Kshs 9,000.Direct labour cost for the month was Kshs.3,840.Production overhead is absorbed at rate of 200%of direct labour cost. Closing WIP in the month were 100 units. These were 80% complete. There was no loss during the process. Required. (i) Determine the unit cost of an item. (ii) Determine the full production cost of completed units during the month of Dec.2021 (iii) Determine the value of w-i-p as at 31st December 2021

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...

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Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
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