The following information relates to company XYZ. Manufacturing overheads: Lighting & Heating Administration employees Employee accident...

 

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The following information relates to company XYZ. Manufacturing overheads: Lighting & Heating Administration employees Employee accident insurance Plant and Equipment Insurance Plant and Equipment maintenance & repairs (minor) Plant and Equipment maitenance & repairs (major) Rent Allocation by departments: Area occupied (sqm²) Depreciation No. of employees Book value Maintenance hours Indirect Materials Indirect Labour Department A I 200 20 000 10 250 000 18.000 8.000 10 000 Department B 2300 40 000 18 450 000 25.000 12 000 14.000 BWP 8 000 70 000 I 200 70 000 20 000 200.000 25 000 Total 3.500 60 000 28 700 000 43 000 20.000 24 000 8 / 9 | - 100% + Required: a. Allocate the manufacturing overheads by departments. (15 marks) b. A product passes through two processes A and B. During the month ended June, 1,500 products were produced. The detailed cost break up is as follows: Direct materials Direct Labour Direct expenses Process A P90 000 P75 000 P15 000 Required: Prepare relevant process accounts. Process B P75 000 P150 000 P18 000 Indirect overhead cost during the period were P60,000 apportioned to the processes based on direct labour costs. No work in progress existed at the beginning and end of the period. (10 marks) The following information relates to company XYZ. Manufacturing overheads: Lighting & Heating Administration employees Employee accident insurance Plant and Equipment Insurance Plant and Equipment maintenance & repairs (minor) Plant and Equipment maitenance & repairs (major) Rent Allocation by departments: Area occupied (sqm²) Depreciation No. of employees Book value Maintenance hours Indirect Materials Indirect Labour Department A I 200 20 000 10 250 000 18.000 8.000 10 000 Department B 2300 40 000 18 450 000 25.000 12 000 14.000 BWP 8 000 70 000 I 200 70 000 20 000 200.000 25 000 Total 3.500 60 000 28 700 000 43 000 20.000 24 000 8 / 9 | - 100% + Required: a. Allocate the manufacturing overheads by departments. (15 marks) b. A product passes through two processes A and B. During the month ended June, 1,500 products were produced. The detailed cost break up is as follows: Direct materials Direct Labour Direct expenses Process A P90 000 P75 000 P15 000 Required: Prepare relevant process accounts. Process B P75 000 P150 000 P18 000 Indirect overhead cost during the period were P60,000 apportioned to the processes based on direct labour costs. No work in progress existed at the beginning and end of the period. (10 marks)

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a Allocation of the manufacturing overhead by departments as follows Lighting Heating Allocate based ... View the full answer