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1. Wooden Play Things Ltd makes wooden toys for kids. The following actual costs relates to a sets of ABC building blocks made for Toy Hill Limited:

Number of ABC Block Sets	200
Wood	$ 4,000
Paint	$ 1,500
Packaging	$ 1,200
Direct Labour	$ 6,000
Electricity	$ 1,400		Per month
Water	$ 500		Per month
Maintenance	$ 450		Per month
Machinery Depreciation	$ 1,300		Per month

Overheads are allocated on a labour hour basis. Wooden Play Things Ltds standard labour hours are 1000 for the month. During the month 150 labour hours were spent on completing the ABC building blocks for Wooden Play Things Limited.

Required:

1. Prepare the Job Card for these ABC Block Sets.

2. Suggest a selling price per ABC Block Set for making a 50% profit on cost.

3. Name four (4) accounts that would be involved in recording the above costs in the accounting books of the Company.

4. Illustrate the above entries in the Work in Process, Finished Goods and Factory Overhead Control Account.

1. During February the following costs were incurred in a process:

Materials (5,000 kg) $15,000

Labour $12,500

Overheads $25,000

A normal loss of 10% of input was expected. Actual output was 4,610 kg. Losses are sold as scrap for $2.50 per kg.

Required:

1. Calculate the cost per kg
2. Prepare a Process Account
3. Prepare a Loss Account

2. During March the following costs were incurred in a process:

Materials (4,000 kg) $40,000

Labour $30,000

Overheads $25,000

A normal loss of 10% of input was expected. Actual output was 3,420 kg. Losses are sold as scrap for $9.00 per kg.

Required:

1. Calculate the cost per kg
2. Prepare a Process Account
3. Prepare a Loss Account

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