BabyBlue Limited manufactures receiving blankets for newborn babies. The following Information relates to the manufacturing costs incurred
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Question:
BabyBlue Limited manufactures receiving blankets for newborn babies.
The following Information relates to the manufacturing costs incurred during the year ended June X:
o Estimated normal annual production level blankets
o actual annual production blankets.
o Ending inventory: units finished goods
o Direct materials purchased C per unit.
o Direct labour C per unit
o Variable overheads C per unit
o Fixed overheads Cannual
Required:
a Calculate the value of the inventory inventory at June X
b Calculate the portion of the fixed manufacturing overheads capitalized to inventory during the year ended June X
c Calculate the portion of the fixed manufacturing overheads still in inventory at June X
d Calculate the portion of the fixed manufacturing overheads that have been expensed during the year ended June X
e Show all journals possible. Assume that all transactions events were processed as single transactions and that, where applicable, amounts were paid in cash.
f Calculate the amount at which cost of inventories expense will be disclosed in the statement of comprehensive income for the year ended June X
Ignore tax.
Part B
Use the same information as that provided in Part A but assume:
The actual annual production totalled units instead of units
Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730302414
4th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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