Question 1: On October 18, 2017 Company B receives an order from one of its customer...

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Question 1: On October 18, 2017 Company B receives an order from one of its customer to be completed by October 24, 2017. Company prepared the necessary calculations to determine the manufacturing cost of this order to propose a price to the customer. Production activities of Company B related to this job are below: 1. The company purchases 600.000 TL worth material during the period. 2. Cost of direct material used in manufacturing is 400.000 TL 3. Cost of indirect material used in manufacturing is 150.000 TL 4. Total salary expenses incurred by the company is 1.500.000 TL and it can be grouped as follows: i. Direct labor ii. Indirect labor 800.000 TL 250.000 TL 450.000 TL iii. Administrative Salaries : s. The revenue is received in cash on October 24, 2017. Actual manufacturing and operating expenses for the month of October are known at exact amounts as of November 5, 2017 and are as follows: : 6. Repair and maintenance expense of manufacturing equipment for this job/order is 175.000 TL. 7. Depreciation expense of manufacturing machinery for this job/order is 100.000 TL 8. The company paid 180.000 TL for insurance of manufacturing plant. 9. The company paid 10.000 TL for utilities expense of administrative department. 10. From utilities expense of manufacturing department for the current period, 200.000 TL is assigned to this job/order. 11. From rent expense of manufacturing department, 120.000 TL is assigned to this order. 12. Depreciation expense of administrative department is 70.000 TL 13. Ending WIP Inventory is 300.000 TL. 14. Sales revenue earned is 3.000.000 TL. Material Inventory, 200.000 TL, October 17 2017 WIP Inventory, 100.000 TL, October 17 2017 Finished Goods Inventory, 50.000 TL, October 17 2017 Required: a) Record the journal entries of transactions for the period. b) Calculate actual amount of Gross P/L. Question 1: On October 18, 2017 Company B receives an order from one of its customer to be completed by October 24, 2017. Company prepared the necessary calculations to determine the manufacturing cost of this order to propose a price to the customer. Production activities of Company B related to this job are below: 1. The company purchases 600.000 TL worth material during the period. 2. Cost of direct material used in manufacturing is 400.000 TL 3. Cost of indirect material used in manufacturing is 150.000 TL 4. Total salary expenses incurred by the company is 1.500.000 TL and it can be grouped as follows: i. Direct labor ii. Indirect labor 800.000 TL 250.000 TL 450.000 TL iii. Administrative Salaries : s. The revenue is received in cash on October 24, 2017. Actual manufacturing and operating expenses for the month of October are known at exact amounts as of November 5, 2017 and are as follows: : 6. Repair and maintenance expense of manufacturing equipment for this job/order is 175.000 TL. 7. Depreciation expense of manufacturing machinery for this job/order is 100.000 TL 8. The company paid 180.000 TL for insurance of manufacturing plant. 9. The company paid 10.000 TL for utilities expense of administrative department. 10. From utilities expense of manufacturing department for the current period, 200.000 TL is assigned to this job/order. 11. From rent expense of manufacturing department, 120.000 TL is assigned to this order. 12. Depreciation expense of administrative department is 70.000 TL 13. Ending WIP Inventory is 300.000 TL. 14. Sales revenue earned is 3.000.000 TL. Material Inventory, 200.000 TL, October 17 2017 WIP Inventory, 100.000 TL, October 17 2017 Finished Goods Inventory, 50.000 TL, October 17 2017 Required: a) Record the journal entries of transactions for the period. b) Calculate actual amount of Gross P/L.

Answer rating: 100% (QA)

aJournal entries Particulars Debit Credit Purchase ac Dr Cash material being purchase... View the full answer