You are the cost accountant for Scout Enterprises Ltd, a manufacturing company.Using the financial information and company
Question:
You are the cost accountant for Scout Enterprises Ltd, a manufacturing company.Using the financial information and company policies provided, you are required to prepare the bi-annual Manufacturing Statement, Cost of Goods Sold Statement, and Income Statement. You have collated the following financial information for the six months ended 31 December 2022:
Additional Information
New factory equipment was purchased on 1st August (same year).
The above information is exclusive of GST.
Company Policy States:
Depreciation is to be provided on factory equipment at 20%.
Factory overheads are charged (applied) to Work in Progress at $25 per direct labour hour.
Freight inwards of direct material is considered part of the direct material cost.
Delivery costs of finished goods are treated as part of the cost of goods sold.
The company tax rate is 30%
Manufacturing Statement | ||
$ | $ | |
Direct Materials | ||
Direct Labour | ||
Factory Overhead | ||
COST OF GOODS MANUFACTURED |
Cost of Goods Sold Statement | |
$ | |
COST OF GOODS SOLD |
Income Statement | ||
$ | $ | |
Gross profit | ||
Profit after tax |
Over/under applied factory overheads | |
$ | |
Factory Overheads incurred | |
Less: Factory Overheads applied | |
Under/(Over) applied overheads |
Calculate Factory overheads incurred (including depreciation on this page).
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins