4 9 6,000 1 2 Question 1 (18 marks) 3 The following information has been taken from the accounting records of January Ltd: The company uses an actual costing system. Sales and expenses have been static for the past few periods. 5 6 Variable Selling expenses $79,000 7 Variable Utilities, factory/plant 8,000 8 Rent, office 26,000 Depreciation, factory/plant equipment, straight-line 24,000 10 Purchases of direct materials 81,000 12 Rent, factory/plant 54,000 12 Sales 550,000 13 Insurance, factory/plant 14 Fixed Administration expenses 56,000 15 Indirect materials 12,000 16 Depreciation, office equipment, straight-line 11,000 17 Indirect factory/plant labour costs incurred 10,000 18 Maintenance, factory/plant 35,000 19 20 The factory works are paid on average $20/hour and they worked 7,500 hours this year 21 22 Inventories Opening Ending 23 Direct Materials $14.000 $18,000 24 Work in Process 30,000 30,000 25 Finished Goods 28,000 28,000 26 27 REQUIRED: 28 29 1 Prepare a schedule of COGM (9 marks) and COGS (3 marks) 30 31 2 Based on your numbers above, create the journal entries for the following: (2 marks each) 32 33 2. Direct materials used 34 Account Name Debit Credit 35 36 37 38 b. Cost of goods manufactured Account Name 39 Debit Credit 40 41 42 43 44 c. Cost of goods sold Account Name Debit Credit 45 42 49 SD