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14 marksCost Classification and Manufacturing Accounts

CSEC Principles of Accounts · January 2009 · Paper 2 · Question 4(a)

Lipset Enterprise manufactures concrete garden benches. Operational figures for raw materials, work in progress, purchases, carriage, wages, direct expenses, overheads, and administrative/selling expenses are provided for the year ending June 30, 2008.

Prepare Lipset Enterprise's Manufacturing Account for the year ended June 30, 2008, showing clearly: Cost of material available for use, Cost of material consumed, Prime cost, Factory overheads, and Cost of production.

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Other parts of this question

  1. 4(b)Calculate the production cost per bench.[2 marks]
  2. 4(c)Calculate the total revenue earned from the sale of the benches, assuming Lipset Enterprise sells all 1 000 benches at $500 EACH.[1 mark]
  3. 4(d)Calculate the profit made by Lipset Enterprise for the period, showing all your workings.[3 marks]

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