DEVIL FACTORY manufactures customised soccer boots. DEVIL FACTORY uses a job order costing system and the...

 

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DEVIL FACTORY manufactures customised soccer boots. DEVIL FACTORY uses a job order costing system and the factory overhead is allocated based on machine hours. Total factory overhead is estimated to be RM1,500,000 for the current year and estimates that its total machine hours for the year are 50,000 hours. The following information is for the month of June 2022: Inventories on June 1, 2022: Work in Process: KASUT (RM9,000) During August, the factory worked on its existing product: • KASUT as well as new product SHOEZ & SEPATU. Materials (including indirect materials) purchased during the month amounted to RM120,000. • Materials issued to SHOEZ amounted to RM10,000, KASUT was issued materials of RM15,000 and SEPATU was issued material of RM12,000. • During the month, the direct labor rate was RM40 per hour. Labour and machine hours recorded for the month of June: Job SHOEZ KASUT SEPATU Direct Labor Hours 120 140 130 During June, following manufacturing overheads were incurred: indirect material worth RM2,000 were used, indirect labour cost incurred were RM3,000, insurance amounted to RM3,500 incurred but yet to be paid (all relates to the factory operations); depreciation on factory vehicle amounted to RM1,500. b. Machine Hours 100 105 115 SHOEZ was completed during June and transferred to Finished Goods and sold for a profit of RM5,000 in the same month itself. All purchases of material and sales of goods were on credit. Required: a. C. Show the workings for pre-determined overhead rate. Prepare the necessary journal entries to record the transaction. Prepare a Job Cost Sheet for SHOEZ & SEPATU (2 marks) (13 marks) (9 marks) DEVIL FACTORY manufactures customised soccer boots. DEVIL FACTORY uses a job order costing system and the factory overhead is allocated based on machine hours. Total factory overhead is estimated to be RM1,500,000 for the current year and estimates that its total machine hours for the year are 50,000 hours. The following information is for the month of June 2022: Inventories on June 1, 2022: Work in Process: KASUT (RM9,000) During August, the factory worked on its existing product: • KASUT as well as new product SHOEZ & SEPATU. Materials (including indirect materials) purchased during the month amounted to RM120,000. • Materials issued to SHOEZ amounted to RM10,000, KASUT was issued materials of RM15,000 and SEPATU was issued material of RM12,000. • During the month, the direct labor rate was RM40 per hour. Labour and machine hours recorded for the month of June: Job SHOEZ KASUT SEPATU Direct Labor Hours 120 140 130 During June, following manufacturing overheads were incurred: indirect material worth RM2,000 were used, indirect labour cost incurred were RM3,000, insurance amounted to RM3,500 incurred but yet to be paid (all relates to the factory operations); depreciation on factory vehicle amounted to RM1,500. b. Machine Hours 100 105 115 SHOEZ was completed during June and transferred to Finished Goods and sold for a profit of RM5,000 in the same month itself. All purchases of material and sales of goods were on credit. Required: a. C. Show the workings for pre-determined overhead rate. Prepare the necessary journal entries to record the transaction. Prepare a Job Cost Sheet for SHOEZ & SEPATU (2 marks) (13 marks) (9 marks)

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a The predetermined overhead rate is calculated by dividing the total estimated factory overhead for the year by the total estimated machine hours for ... View the full answer