Tut, Please can you explain how Manager treat cost of materials and its delivery in Manufacturing company where two Vendors are involved.
A. A. Company bought 1,000 wraps at the cost of NGN1 from Jane
B. The Company used Klick to transport the 1,000 wraps to its Office for the sum of N100.
C. Wrap is a packaging materials for Sweet.
D. To produce one sweet, you need one piece of wrap.
Then, at delivery, goods receipt note was used to receive wraps into Inventory.
The Company paid Klick and Jane the sum of NGN1,00 and NGN1000 respectively.
The total cost of the 1,000 wraps comes to N1,100.
How will the cost be treated in line with production order, production and cost to finished goods?
Kindly clarify for it is posing a serious problem.