W1-2-60-1-6
JOMO KENYATTA UNIVERSITY
OF
AGRICULTURE AND TECHNOLOGY
University Examinations 2018/2019
YEAR TWO SEMESTER ONE EXAMINATIONS FOR THE DEGREE OF BACHELOR OF BUSINESS
AND INFORMATION TECHNOLOGY
HBC 2203: COST ACCOUNTING
CAT Due: 19th July
INSTRUCTIONS: ANSWER ALL QUESTIONS
QUESTION ONE
a. A Manufacturing Company provides the following information for the month of June 2019.
Stock on 1st June: Raw Material 40,000
Work in Progress 12,000
Finished goods 20,000
Stocks on 30th June:
Raw Materials 35,000
Work in progress 17,000
Finished goods 23,000
Purchases of raw Materials 250,000
Factory Wages 80,000
Salaries of Supervisors 30,000
Factory Rent 10,000
Factory Power 5,000
Sundry factory expenses 15,000
Office salaries 13,000
Sundry office expenses 7,000
Salesmen’s Salaries 18,000
Sundry selling expenses 6,000
Sales 500,000
Required:
i. Prepare a production cost statement (5 Marks)
ii. Prepare a profit and loss statement (5 Marks)
QUESTION TWO
Fresha Dairies ltd manufactures yogurt that goes through three processing stages prior to
completion. Information on work in the first department, flavor identification and blending, is given
below for November:
Data on Production:
Pounds in process at November 1;
JOMO KENYATTA UNIVERSITY
OF
AGRICULTURE AND TECHNOLOGY
University Examinations 2018/2019
YEAR TWO SEMESTER ONE EXAMINATIONS FOR THE DEGREE OF BACHELOR OF BUSINESS
AND INFORMATION TECHNOLOGY
HBC 2203: COST ACCOUNTING
CAT Due: 19th July
INSTRUCTIONS: ANSWER ALL QUESTIONS
QUESTION ONE
a. A Manufacturing Company provides the following information for the month of June 2019.
Stock on 1st June: Raw Material 40,000
Work in Progress 12,000
Finished goods 20,000
Stocks on 30th June:
Raw Materials 35,000
Work in progress 17,000
Finished goods 23,000
Purchases of raw Materials 250,000
Factory Wages 80,000
Salaries of Supervisors 30,000
Factory Rent 10,000
Factory Power 5,000
Sundry factory expenses 15,000
Office salaries 13,000
Sundry office expenses 7,000
Salesmen’s Salaries 18,000
Sundry selling expenses 6,000
Sales 500,000
Required:
i. Prepare a production cost statement (5 Marks)
ii. Prepare a profit and loss statement (5 Marks)
QUESTION TWO
Fresha Dairies ltd manufactures yogurt that goes through three processing stages prior to
completion. Information on work in the first department, flavor identification and blending, is given
below for November:
Data on Production:
Pounds in process at November 1;
