Eware Ltd, a bakery, records the following transactions in its books for the month of August a.
Question:
a. Raw materials of $182,000 were purchased on credit.
b. The total of stores requisitions for direct materials issued for the period was $165,000.
c. The total issues for indirect materials for the period was $10,000.
d. Gross wages of $185,000 were incurred during the period consisting of wages paid to employees $105,000; tax deductions payable to the tax authority $60,000 and social insurance contribution due $20,000. All of these were settled promptly by cash.
e. The allocation of the gross wages for the period was as follows: direct wages $145,000 and indirect wages $40,000.
f. The employer’s contribution for social insurance contribution was $25,000.
g. Indirect factory expenses of $41,000 were incurred during the period.
h. Depreciation of factory machinery was $30,000.
i. Overhead expenses allocated to jobs by means of overhead allocation rates was $140,000 for the
j. Non-manufacturing overhead incurred during the period was $40,000.
k. The cost of jobs completed and transferred to finished goods inventory was $300,000.
l. The revenue value of baked items withdrawn from inventory and delivered to customers was 400,000 for the period.
m. The cost of baked items withdrawn from inventory and delivered to customers was $240,000 for the period.
1. Show the journal entries for each transaction.
2. Show the T-account (ledger) of the major transactions. period.
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118983270
7th edition
Authors: Michael Granof, Saleha Khumawala, Thad Calabrese, Daniel Smith