A company has the following balances in its accounting accounts (Table 1). The company also has costs
Question:
A company has the following balances in its accounting accounts (Table 1). The company also has costs to be allocated. (see Table 2)
Table 1: accounting account Debit
Rawmaterial 113 000
Wages 181 000
MO 76 000
TO 67 500
FO 78 000
AO 95 000
Table 2: Costs to be allocated
Depreciation:
Warehouse (raw material) 5 100
Warehouse (complete products) 1 400
Work machines 124 000
Office inventories 42 000
Calculed interest:
Storage materials 6 600
Goods at work 7 900
Complete products 10 100
Rents:
manufacturing 162 000
The office 12 000
Close the accounts (in table 1) with regard to the information in table 2. Then calculate expense loading according to the traditional absorption costing method
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby