Question 1 The following details have been obtained from the cost records of ABC Ltd. Particulars...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 1 The following details have been obtained from the cost records of ABC Ltd. Particulars OMR Stock of raw materials on 1.12.2019 75,000 Stock of raw materials on 31.12.2019 Direct Wages 91 500 52,500 Sales Work-in-progress 1.12.2019 Work-in-progress 31.12.2019 Purchases of raw materials Factory rent, rates and power Depreciation of plant and machinery Expenses on purchases Carriage outwards Advertising 2,750 211,000 28,000 35,000 66,000 15,000 3,500 1,500 2.500 3,500 2,500 office rent and taxes Travellers wages and commission 6,500 $4,000 Stock of finished goods (1.12.2019) Stock of finished goods (31.12.2019) 31,000 Prepare a Cost sheet and ascertain (1) Cost of raw materials used (ii) Prime cost (iii) Gross Factory cost (iv) Factory cost(v) Cost of Production (vi) Cost of goods sold (vii) Cost of sales and (viii) Profit. (4 marks) b) The following data relate to the manufacture of product during the month of April 2019. Raw materials purchased OMR 48,000 Sale of raw material scrap OMR 8,000 OMR 24,000 4000 Direct wages Machine hours worked Machine hour rate Non-productive wages Administrative overheads Selling Overheads Units produced and sold Selling price per unit OMR 2 OMR 2,000 5% of works cost OMR 0.75 per unit 3,000 OMR 40 Prepare a Cost sheet and ascertain (i) Cost of raw materials used (ii) Prime cost(iii) Factory overheads(iv) Factory cost(v)Cost of Production(vi) Cost of sales and (vii) Profit and (viii)Sales. (4 marks) c) A factory requires 2000 units of certain material for a year. Cost of carrying one unit of this material is OMR I per annum and it is estimated that the expenses of placing an order and receiving would be OMR 10. Calculate (i) Economic Order Quantity and (ii) Number of orders per year. (2 marks) Question 2 a) You are required to compute (i) Economic ordering quantity and (ii) Frequency of the orders in terms of days, from the data given below: Consumption of Material per annum Ordering costs per order OMR 8000 OMR 25 Storage and carrying cost per annum 10% of inventory value. (4 marks) b) The following information is available in respect of component D20: Maximum stock level Budgeted consumption units per month units per month Estimated delivery period: You are required to calculate: i. Re-order level ii. Re-order quantity Normal usage Maximum usage Minimum usage Reorder quantity: X 4,800 units Y 7,200 units <) Two components X and Y are used as follows: 600 units per week each 900 units per week each 300 units per week each Reorder Period: (4 marks) X 4 to 6 weeks Y 2 to 4 weeks. 42,000 units : Maximum 7500 Minimum 4000 Maximum 4 months Minimum 2 months Calculate for each component: (i) Maximum level (ii) Average stock level. (2 marks) Question 1 The following details have been obtained from the cost records of ABC Ltd. Particulars OMR Stock of raw materials on 1.12.2019 75,000 Stock of raw materials on 31.12.2019 Direct Wages 91 500 52,500 Sales Work-in-progress 1.12.2019 Work-in-progress 31.12.2019 Purchases of raw materials Factory rent, rates and power Depreciation of plant and machinery Expenses on purchases Carriage outwards Advertising 2,750 211,000 28,000 35,000 66,000 15,000 3,500 1,500 2.500 3,500 2,500 office rent and taxes Travellers wages and commission 6,500 $4,000 Stock of finished goods (1.12.2019) Stock of finished goods (31.12.2019) 31,000 Prepare a Cost sheet and ascertain (1) Cost of raw materials used (ii) Prime cost (iii) Gross Factory cost (iv) Factory cost(v) Cost of Production (vi) Cost of goods sold (vii) Cost of sales and (viii) Profit. (4 marks) b) The following data relate to the manufacture of product during the month of April 2019. Raw materials purchased OMR 48,000 Sale of raw material scrap OMR 8,000 OMR 24,000 4000 Direct wages Machine hours worked Machine hour rate Non-productive wages Administrative overheads Selling Overheads Units produced and sold Selling price per unit OMR 2 OMR 2,000 5% of works cost OMR 0.75 per unit 3,000 OMR 40 Prepare a Cost sheet and ascertain (i) Cost of raw materials used (ii) Prime cost(iii) Factory overheads(iv) Factory cost(v)Cost of Production(vi) Cost of sales and (vii) Profit and (viii)Sales. (4 marks) c) A factory requires 2000 units of certain material for a year. Cost of carrying one unit of this material is OMR I per annum and it is estimated that the expenses of placing an order and receiving would be OMR 10. Calculate (i) Economic Order Quantity and (ii) Number of orders per year. (2 marks) Question 2 a) You are required to compute (i) Economic ordering quantity and (ii) Frequency of the orders in terms of days, from the data given below: Consumption of Material per annum Ordering costs per order OMR 8000 OMR 25 Storage and carrying cost per annum 10% of inventory value. (4 marks) b) The following information is available in respect of component D20: Maximum stock level Budgeted consumption units per month units per month Estimated delivery period: You are required to calculate: i. Re-order level ii. Re-order quantity Normal usage Maximum usage Minimum usage Reorder quantity: X 4,800 units Y 7,200 units <) Two components X and Y are used as follows: 600 units per week each 900 units per week each 300 units per week each Reorder Period: (4 marks) X 4 to 6 weeks Y 2 to 4 weeks. 42,000 units : Maximum 7500 Minimum 4000 Maximum 4 months Minimum 2 months Calculate for each component: (i) Maximum level (ii) Average stock level. (2 marks)
Expert Answer:
Answer rating: 100% (QA)
Answer 1 a Cost Sheet for ABC Ltd Particulars Amount OMR Stock of raw materials 1122019 75000 Purchases of raw materials 91500 Direct Wages 28000 Indirect Wages 2750 Factory Rent Rates and Power 3500 ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
Posted Date:
Students also viewed these accounting questions
-
Question 1 The following data, in physical units, describe a grinding process for January: Work in process, beginning 19,000 Started during current period 50,000 To account for 169,000 Spoiled units...
-
The following details have been extracted from KL?s budget:Selling price per unit ..................................$140Variable production costs per unit ...............$45Fixed production costs per...
-
The following details have been extracted from the budget of a merchandiser. Commission and salaries expenses are paid 50% in the month to which they relate and the balance in the next month. Rent...
-
C) Use the appropriate Maxwell relation and determine whether the specific heat capacity at constant pressure (Cp) is a function of pressure at onstant temperature for: i) An ideal gas ii) [6 marks]...
-
MULTIPLE-CHOICE QUESTIONS 1. Which of the following statements is false regarding audit reporting? a. The auditor's opinion should be expressed in a written report. b. The auditor should provide an...
-
What are three income approaches used to value a business?
-
What happens if you specify an invalid format string?
-
1. Prepare a context diagram for the new system. 2. Prepare a diagram 0 DFD for the new system. 3. Write a brief memo that explains at least five attributes that you can use to define a process in...
-
In the following exercises, use a contour consisting of a long rectangle with one side on the real axis and height 2 for Exercise 6, height for Exercise 7. 7. ex/n dx, n=2, 3,... x ex sinh x dx
-
Saratoga Ltd. was having difculty in raising nance for expansion. Kingsh Ltd. was interested in achieving economies by marketing a wider range of products. The following shows the nancial positions...
-
Summer Time Corporation (STC) is located in Toronto, Ontario. The company is owned by 2 friends that met each other while attending Algoma University. The company manufactures two summer time game...
-
Assume that Freezeqwik Ltd (Activity 10.16) wishes to reduce its OCC by 30 days. Evaluate each of the options available to this business.
-
The following figures relate to the retail business of Daisy King for the month of July. Goods sold fall into two categories, X and Y. You are to calculate for each category of goods: (a) Cost of...
-
Styrene can be hydrogenated to ethyl benzene at moderate conditions in both the liquid and the gas phases. Calculate the equilibrium compositions in the vapor and liquid phases of hydrogen, styrene,...
-
A home heating system maintains the indoor temperature at 20 C. The outside temperature is 0 C. A furnace burns natural gas to heat a 1:4 mixture of outside and inside air. The resulting air is at a...
-
Yaso is in business buying and selling goods on credit. He is concerned that although his business is making a good profit, his balance at the bank is not increasing. The following information is...
-
Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high-low method, what is the variable portion of sales salaries and...
-
Which property determines whether a control is available to the user during run time? a. Available b. Enabled c. Unavailable d. Disabled
-
Sony is a world leader in the manufacture of consumer and commercial electronics as well as the entertainment and insurance industries. Required: Using the table below, indicate the most likely...
-
In some cases, a manager can engage in transactions that improve the appearance of financial reports without affecting the underlying economic reality. In this chapter, we discussed the importance of...
-
Pauls Painters, a service organization, prepared the following special report for the month of January 2015: Required: 1. The owner (who knows little about the financial part of the business) asked...
-
Portugal has a progressive personal income tax system. In 2016, tax rates on taxable income were \(14.5 \%\) on the first \( 7,035,21 \%\) on the next \( 13,065,37 \%\) on the next \( 20,100,45 \%\)...
-
In its 2016 International Tax Competitiveness Index report, the U.S.-based Tax Foundation ranked Estonia as having the most competitive tax system in the OECD, based in part on its \(20 \%\) flat tax...
-
A lump-sum tax is a fixed amount of tax per person. If a lump-sum tax, \(T\), raises the same amount of revenue for the government as a tax on earnings at the rate, \(t\), then \(t w H=T\), where...
Study smarter with the SolutionInn App