Below are the costs incurred by Donanaten Company, an accounting firm: Depreciation of computers used by personnel
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Question:
Below are the costs incurred by Donanaten Company, an accounting firm: | ||||||||
Depreciation of computers used by personnel in tax engagements | 12,000.00 | |||||||
Depreciation of computer in the human resource department | 5,000.00 | |||||||
Salaries of personnel in audit and tax engagements | 75,000.00 | |||||||
Office supplies used by the payroll clerk | 500.00 | |||||||
Utilities | 3,000.00 | |||||||
Rent for office 1/4 of which is occupied by administrative personnel | 10,000.00 | |||||||
Salaries for administrative personnel | 50,000.00 | |||||||
Travel expenses incurred in the course of audit engagements | 23,000.00 | |||||||
Required: | ||||||||
1. Prepare a schedule of cost of services provided (similar to a cost of goods manufactured schedule) | ||||||||
for the month of February of the current year. | ||||||||
2. Prepare a schedule for operating expenses | ||||||||
EXERCISE 2 | ||||||||
Presented below are certain account balances of Our Home Company: | ||||||||
Administrative Expenses | 82,500.00 | Purchases | 190,000.00 | |||||
Beginning Inventory | 45,300.00 | Rental Revenue | 6,500.00 | |||||
Ending Inventory | 48,000.00 | Dividends earned | 71,000.00 | |||||
Income Tax | 21,856.00 | Freight-in | 10,100.00 | |||||
Interest Expense | 12,700.00 | Sales discounts | 7,800.00 | |||||
Purchase Discounts | 2,500.00 | Sales returns | 12,400.00 | |||||
Purchase Returns | 10,500.00 | Sales | 390,000.00 | |||||
Accumulated profits, beg. | 114,400.00 | Selling expenses | 99,400.00 | |||||
Accumulated profits, end. | 134,000.00 | |||||||
Required: | ||||||||
Compute for the COGS; | ||||||||
EXERCISE 3 | ||||||||
The following data have been taken from the accounting records of Karsten Corporation for the just completed year. | ||||||||
Sales | 990,000.00 | |||||||
RM, bag | 70,000.00 | |||||||
RM, end | 30,000.00 | |||||||
Purchases of RM | 100,000.00 | |||||||
DL | 200,000.00 | |||||||
FOH | 160,000.00 | |||||||
Administrative expenses | 180,000.00 | |||||||
Selling expenses | 150,000.00 | |||||||
WIP, beg | 40,000.00 | |||||||
WIP, end | 70,000.00 | |||||||
FG, beg | 150,000.00 | |||||||
FG, end | 130,000.00 | |||||||
Required: | ||||||||
1. Compute for the raw materials used in production for the year. | ||||||||
2. How much was cost of goods manufactured for the year? | ||||||||
3. Compute for the cost of goods sold of the company. | ||||||||
4. Prepare a simple income statement. | ||||||||
EXERCISE 4 | ||||||||
Janatoo Company had the following inventories on: | ||||||||
Feb. 1 | Feb. 28 | |||||||
Materials | 315,000.00 | 157,500.00 | ||||||
FG | 262,500.00 | 246,750.00 | ||||||
WIP- materials | 157,500.00 | 63,000.00 | ||||||
WIP- labor | 189,000.00 | 105,000.00 | ||||||
WIP- overhead | 141,750.00 | 78,750.00 | ||||||
During the month, the cost of materials purchased was P1,050,000, direct labor cost incurred was P945,000 and FOH applicable to production was 75% of the direct labor cost. | ||||||||
Required: | ||||||||
Prepare T-accounts showing the flow of the cost of goods manufactured and sold, using three accounts for WIP. | ||||||||
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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