EXERCISE 6: Company Halco Company Halco produces and sell Product Y and Z for supermarkets. Accounting...

  

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EXERCISE 6: Company Halco Company Halco produces and sell Product Y and Z for supermarkets. Accounting department has provided information regarding stocks and costs of the period as below tables. Y is produced from raw materials while Z is produced from Y. For June year N, Company Halco has purchased several times and the total amount was 85,000 €. Company Halco has also used 12,000 kg of Y to produce Z. Production in June was 16,000 units of Y and 10,800 units of Z. Beginning inventory: ● Raw materials • Finished goods Y Finished goods Z Sales of June: ● Finished goods Y Finished goods Z 114,000 € 8,800 Kg for 87,800 € 1,900 Kg for 34,200 € 10,500 Kg @ 20 € per kg 12,000 Kg @ 35 € per kg Closing inventory: ● ● Raw materials Finished goods Y Finished goods Z Table of indirect cost: Cost items Apportionned cost Reapportionment Store Human resource Administration Human resource Service departments 25,000 3 Store 64,000 € 2,300 units 700 units 21,000 2,5 Adminis- tration 23,800 7,5 4 Prod 1 Production department 23,000 5 5 1/3 Prod 2 35,000 5 4 1/4 Distribu-ti on 18,000 5 4 remaining Prod 1 department is dedicated for Product Y; therefore its cost is incorporated only in production cost of Product Y. The total indirect cost of Prod 2 department is totally for Product Z whereas the total of Distribution department is divided between Product Y and Product Z for 1/3 and 2/3 respectively. Required 1 Prepare an analysis showing the distribution of overhead costs to departments. Reapportion service cost centre costs using the reciprocal method. 2. Calculate production cost for Product Y and Product Z. 3. Show profit analysis of June. EXERCISE 6: Company Halco Company Halco produces and sell Product Y and Z for supermarkets. Accounting department has provided information regarding stocks and costs of the period as below tables. Y is produced from raw materials while Z is produced from Y. For June year N, Company Halco has purchased several times and the total amount was 85,000 €. Company Halco has also used 12,000 kg of Y to produce Z. Production in June was 16,000 units of Y and 10,800 units of Z. Beginning inventory: ● Raw materials • Finished goods Y Finished goods Z Sales of June: ● Finished goods Y Finished goods Z 114,000 € 8,800 Kg for 87,800 € 1,900 Kg for 34,200 € 10,500 Kg @ 20 € per kg 12,000 Kg @ 35 € per kg Closing inventory: ● ● Raw materials Finished goods Y Finished goods Z Table of indirect cost: Cost items Apportionned cost Reapportionment Store Human resource Administration Human resource Service departments 25,000 3 Store 64,000 € 2,300 units 700 units 21,000 2,5 Adminis- tration 23,800 7,5 4 Prod 1 Production department 23,000 5 5 1/3 Prod 2 35,000 5 4 1/4 Distribu-ti on 18,000 5 4 remaining Prod 1 department is dedicated for Product Y; therefore its cost is incorporated only in production cost of Product Y. The total indirect cost of Prod 2 department is totally for Product Z whereas the total of Distribution department is divided between Product Y and Product Z for 1/3 and 2/3 respectively. Required 1 Prepare an analysis showing the distribution of overhead costs to departments. Reapportion service cost centre costs using the reciprocal method. 2. Calculate production cost for Product Y and Product Z. 3. Show profit analysis of June.

Answer rating: 100% (QA)

ANSWER 1 Distribution of overhead costs to departments Store 64000 Human resource 2300 units 7 per u... View the full answer