Jupiter Cereal Manufacturing Co is a wholly owned subsidiary of Jupiter Australasia Ltd. Jupiter manufacture a range
Question:
Jupiter Cereal Manufacturing Co is a wholly owned subsidiary of Jupiter Australasia Ltd. Jupiter manufacture a range of breakfast cereals for the Australian and export markets. The company utilises a traditional manufacturing cost flow inventory and accounting system.
Trading data for Jupiter Cereal Manufacturing Co for the 2020 financial year was as follows:
Account: | $ |
Purchases of Raw Materials & Ingredients | 9,726,000 |
Direct Labour | 2,543,000 |
Indirect Labour (including salaried supervisors) | 1,250,000 |
Direct Manufacturing Overhead (including depreciation) | 2,924,500 |
Other Manufacturing Overhead | 1,158,500 |
Factory heat, light and power | 1,265,500 |
Administration Salaries and Costs | 975,500 |
Freight Inwards | 726,500 |
Freight Outwards | 834,500 |
Sales Revenue | 32,344,500 |
Accounting & Audit costs | 502,000 |
Interest & other charges | 800,500 |
Sales & Marketing Expenses | 1,492,500 |
On June 30th 2020 selected account balances of Jupiter Cereal Manufacturing Co were as follows:
Account: | June 30 2020 | June 30 2019 |
Cash & Receivables | 3,632,500 | 5,976,000 |
Plant & Equipment (at cost) | 4,550,000 | 5,865,000 |
Land & Buildings (at cost) | 9,500,000 | 8,500,000 |
Accounts Payable | 1,947,500 | 1,113,000 |
Raw Material Inventory | 587,500 | 426,000 |
Finished Goods Inventory | 651,000 | 235,000 |
Work in Process (WIP): | ||
Raw Materials | 292,000 | 202,500 |
Direct Labour | 24,500 | 16,000 |
Manufacturing Overhead | 227,500 | 155,500 |
Total WIP | 544,000 | 374,000 |
Jupiter Cereal Manufacturing Co is incorporated and operates in Australia and pays tax at the Australian corporate rate of 30%. There are no adjustments for accruals or prepayments required.
Required:
Using Excel prepare a Schedule of Cost of Goods Manufactured, Schedule of Cost of Goods Sold, and an income statement for the Jupiter Cereal Manufacturing Co from the information provided.
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson