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
Step by step
Solved in 3 steps
