OFM Borc DEFG 2 Question 1 (18 marks) 3 The following information has been taken from the accounting records of January Ltd: 4 The company uses an actual costing system. Sales and expenses have been static for the past few perio Variable Selling expenses $79,000 Variable Utilities, factory plant 8,000 Rent, office 26,000 Depreciation, factory/plant equipment, straight line 24,000 Purchases of direct materials 81,000 Rent, factory/plant 54,000 Sales 550,000 Insurance, factory/plant Fixed Administration expenses 56,000 Indirect materials 12,000 Depreciation office equipment, straight-line 11,000 Indirect factory/plant labour costs incurred 10,000 Maintenance, factory plant 35,000 6,000 Maintenance, factory planet 3500 20 The factory works are paid on average S20/hour and they worked 7,500 hours this year. 4 8 Inventories Direct Materials Work in Process Finished Goods Opening $14.000 30.000 28.000 Ending $18,000 30.000 28.000 26 27 REQUIRED: 28 29 1. Prepare a schedule of COGM (9 marks) and COGS (3 marks) 30 31 2. Based on your numbers above, create the journal entries for the following: (2 marks each) a.Direct materials used Account Name D ebit Credit b.Cost of goods manufactured Account Name Debit Credit c.Cost of goods sold Account Name D ebit Credit