A company employs 60 direct workers who work under a group bonus scheme. The workers are divided into three grades. The bonus is paid based on Rowan scheme and paid at 75% of the basic hourly rate. It shared between the three grades of workers based on the proportion of time spent on the work. The following production data has been extracted from the company’s records for the month of October 2020.
Product
Units produced
Time Allowed per unit
(minutes)

A
720
63

B
1280
120

C
2400
100

Grade of a worker
Number of direct workers
Rate per hour (sh)
Hours worked per worker

1
20
300
30

2
8
270
64

3
32
240
50

Percentage of hours saved to hours worked (4 marks)
Bonus due to each grade of workers (4 marks)
Gross earnings due to each grade of workers (2 marks)

Savanna Constructions Ltd. are retailers who sell ceramic tiles. During the months of July to September 2000, there were price fluctuations. Due to the above problem the company had to adjust its selling prices.
The following transactions took place during the period.
July 3: Opening stock was 5,000 tiles valued at Sh 825,000.
July 10: Orders placed with the company increased, so extra tiles had to be
obtained from Mombasa. Therefore 22,000 tiles were purchased at a cost Sh 140 each but in addition, there was a freight and insurance charge of Sh 5 per tile.
July 31: During the month 20,0000 tiles were sold at a price of Sh 220 each.
August 4: A new batch of 14,000 tiles was purchased at a cost of Sh 175 per tile.
August 3: The sales for the month of August were 14,000 tiles at a selling price of Sh 230 each.
September 1: A further 24,000 tiles were purchased at a cost of Sh 195 each.
September 30: 270,000 tiles were sold during September at price of Sh 240 each.

The cost accountant of Savanna Constructions Ltd decided he would apply first-in-first-out basis method of material pricing for purposes of comparison.
Required:
A stores ledger account using the FIFO method and showing stock values at 30 September 2020. (6 marks)
The trading accounts using the above method.