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Mexwel Ltd. maintains separate books for financial accounting and cost accounting. The extracts from the financial accounting books of the company for the year ended 31...

      

Mexwel Ltd. maintains separate books for financial accounting and cost accounting.
The extracts from the financial accounting books of the company for the year ended 31 October 2012 was as follows:
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Additional information:
1. Opening inventory of finished goods is valued at Sh.312 per unit sold.
2. The company values work-in-progress at factory cost for both financial profit and cost profit reporting.
3. Factory overheads are absorbed at 60% of direct labour.
4. Administrative overheads are recovered at 20% of factory cost.
5. Selling and distribution overheads are charged at Sh. 12 per unit sold.
6. The number of units produced during the year was 14,000.

Required;-
Prepare statements for the year ended 31 October 2012 to show:
(i) The profit as per cost accounting records.
(ii) The profit as per financial accounting records.

  

Answers


Kavungya
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Kavungya answered the question on December 15, 2021 at 10:13


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