Material, Labour and Overhead Costing
ICAN Management Information

Eko Manufacturing Limited, located in Ikeja Industrial Estate, Lagos, manufactures a single standardized component known as 'Eko-Mix' used in the construction industry. The company is preparing its op…

Zuma Manufacturing Limited uses direct labour hours to absorb production overheads. For the year ended 31 December 2023, the budgeted production overheads were ₦24,000,000 based on a budgeted activity…

QUESTION 1 Adekunle Plastics Limited, a Lagos-based manufacturer of household plastic containers, uses a standard costing system. The following information relates to the production of its 'Supreme' …

QUESTION 2 Nigerian Breweries Supply Co. Limited (NBSC), a subsidiary of a large conglomerate in Abuja, manufactures industrial cleaning agents for commercial clients. The company uses an absorption …

QUESTION 3 Kaduna Textile Mills Plc (KTM) is a publicly listed company that manufactures high-quality woven fabrics for both domestic and export markets. The company operates three production departm…

Lagos Plastics Plc budgeted production overhead for the year at ₦18,000,000 and budgeted machine hours at 60,000. Actual production overhead incurred was ₦19,200,000 and actual machine hours worked we…

Under IAS 2 (Inventories), as adopted by the Financial Reporting Council of Nigeria (FRCN), which of the following costs should be EXCLUDED from the cost of inventories of a manufacturing company?

Abuja Engineering Works operates a job costing system. Job No. AEW-047 has the following costs: Direct materials ₦245,000; Direct labour 120 hours at ₦650/hr; Variable overhead ₦180 per direct labour …

Port Harcourt Refineries Ltd uses the FIFO method for pricing material issues. Receipts and issues during April 2024 were: 1 Apr — Opening balance 200 units @ ₦500; 5 Apr — Received 300 units @ ₦600; …

Port Harcourt Refineries Ltd uses FIFO for material issues. Opening balance 1 Apr: 200 units @ ₦500. Received 5 Apr: 300 units @ ₦600. Issued 10 Apr: 350 units. Received 20 Apr: 400 units @ ₦650. Issu…

Abuja Engineering Works operates a job costing system. The following data relate to Job No. AEW-047: Direct materials ₦245,000; Direct labour 120 hours at ₦650 per hour; Variable overhead absorbed at …

Adeola Manufacturing Company uses the weighted average method of inventory valuation. At the beginning of March 2024, it held 400 units of raw material at ₦1,200 per unit. During March, it purchased 6…

Adeola Manufacturing Company uses the weighted average method of inventory valuation. At the beginning of March 2024, it held 400 units of raw material at ₦1,200 per unit. During March, it purchased 6…

Kano Textiles Limited pays its workers a basic wage of ₦800 per hour for a standard 40-hour week. Overtime is paid at time-and-a-half. In a particular week, a direct worker worked 48 hours, of which 6…

Kano Textiles Limited pays its workers a basic wage of ₦800 per hour for a standard 40-hour week. Overtime is paid at time-and-a-half. In a particular week, a direct worker worked 48 hours. The 8 over…