a. General Ledger Raw Materials Co 84,000 Opening Balance Direct Materials issued to Production (WIP) 56,000...
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a. General Ledger Raw Materials Co 84,000 Opening Balance Direct Materials issued to Production (WIP) 56,000 105,000 Indirect material issued to 21,000 Raw materials purchased Fac OH Co Closing balance 112,000 189,000 189,000 Labour Cost Accrued Payroll 144,500 Direct Labour 106,500 In Direct Labour 38,000 144,500 144,500 Indirect Material Indirect Labour Factory rent Factory Depreciation Factory Insurance Factory Electricity and other Factory OH Co/ Actual 21,000 Transferred to Factory OH Applied 62,105 38.000 1,100 780 800 425 62,105 62,105 Factory OH Applied Actual costs transferred from FOH Co 63,900 62.105 COGS (OH under pplied) 1,795 63,900 63,900 Work in Progress 108,000 Cost of Goods 269,800 Opening balance manufactured Direct materials 56,000 Direct labour 106,500 Factory OH applied 63,900 Closing balance 64,600 334,400 334,400 Cost of Goods sold Under-applied overhead b. Overhead calculations COGS 284,000 To Trading Acc 285,795 1,795 285,795 285,795 artment Details Author: Ada Bukolt Date created: 10/2/2024 File name: Version: 1 plate Details Author: VE Quality and Policy Date created: 09 November 2021 Dete lest updated: 16 October 2023 Location: VE Staff WikiQuality Quality Life Cycle Plan Version: 1.2 Page 3 of 14 AT1 Overhead applied = 60% of Direct Labour = 60% * 106,500 = 63,900 SWIN BUR TECHNOLOGY NE Overhead over/under applied = Total actual Overhead - Overhead applied = 62,105 - 63,900 =-1,795 under applied a. Completed correctly in accordance with organisation policy relevant ledger accounts to record production costs b. Calculated correctly amount of Overhead applied to production costs, and identified as Overhead over/under- applied Question 7. Brown Pty Ltd is a small manufacturer. You are provided with a Policy regarding production records as following: Operate a Perpetual Inventory system Record production costs using a single ledger system. Overhead is applied to production at 60% of direct labour. Over/Under applied overhead is transferred to COGS account. All sales are on credit Inventory Balances as of 1 Apr. Materials Co Work in Progress Finished Goods $84,000 108,000 57,600 Transactions for the month of April are as follows: Materials purchased on credit (excl GST) $105,000 Materials issued: Direct materials Indirect materials Labour cost incurred Direct labour Indirect Labour Other factory overheads payable: (all excl GST) 56,000 21,000 144,500 106,500 38,000 Factory electricity 425 Factory rent 1,100 Factory insurance 800 Depreciation of Plant & Equipment 780 Production completed during the month of April 269,800 Cost of goods sold in April 284,000 Required: a. General Ledger Raw Materials Co 84,000 Opening Balance Direct Materials issued to Production (WIP) 56,000 105,000 Indirect material issued to 21,000 Raw materials purchased Fac OH Co Closing balance 112,000 189,000 189,000 Labour Cost Accrued Payroll 144,500 Direct Labour 106,500 In Direct Labour 38,000 144,500 144,500 Indirect Material Indirect Labour Factory rent Factory Depreciation Factory Insurance Factory Electricity and other Factory OH Co/ Actual 21,000 Transferred to Factory OH Applied 62,105 38.000 1,100 780 800 425 62,105 62,105 Factory OH Applied Actual costs transferred from FOH Co 63,900 62.105 COGS (OH under pplied) 1,795 63,900 63,900 Work in Progress 108,000 Cost of Goods 269,800 Opening balance manufactured Direct materials 56,000 Direct labour 106,500 Factory OH applied 63,900 Closing balance 64,600 334,400 334,400 Cost of Goods sold Under-applied overhead b. Overhead calculations COGS 284,000 To Trading Acc 285,795 1,795 285,795 285,795 artment Details Author: Ada Bukolt Date created: 10/2/2024 File name: Version: 1 plate Details Author: VE Quality and Policy Date created: 09 November 2021 Dete lest updated: 16 October 2023 Location: VE Staff WikiQuality Quality Life Cycle Plan Version: 1.2 Page 3 of 14 AT1 Overhead applied = 60% of Direct Labour = 60% * 106,500 = 63,900 SWIN BUR TECHNOLOGY NE Overhead over/under applied = Total actual Overhead - Overhead applied = 62,105 - 63,900 =-1,795 under applied a. Completed correctly in accordance with organisation policy relevant ledger accounts to record production costs b. Calculated correctly amount of Overhead applied to production costs, and identified as Overhead over/under- applied Question 7. Brown Pty Ltd is a small manufacturer. You are provided with a Policy regarding production records as following: Operate a Perpetual Inventory system Record production costs using a single ledger system. Overhead is applied to production at 60% of direct labour. Over/Under applied overhead is transferred to COGS account. All sales are on credit Inventory Balances as of 1 Apr. Materials Co Work in Progress Finished Goods $84,000 108,000 57,600 Transactions for the month of April are as follows: Materials purchased on credit (excl GST) $105,000 Materials issued: Direct materials Indirect materials Labour cost incurred Direct labour Indirect Labour Other factory overheads payable: (all excl GST) 56,000 21,000 144,500 106,500 38,000 Factory electricity 425 Factory rent 1,100 Factory insurance 800 Depreciation of Plant & Equipment 780 Production completed during the month of April 269,800 Cost of goods sold in April 284,000 Required:
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Managerial Accounting
ISBN: 978-0077826482
3rd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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