+Q 2From the following particulars of a manufacturing firm, prepare a statement showing: Materials used in manufacturing OMR 60000 Materials used in primary packing OMR 10000 Materials used in selling the product OMR 1500 Materials used in the factory OMR 750 Administrative expenses OMR 1250 Depreciation on office building OMR 750 Depreciation on factory building OMR1750 Materials used in the office OMR 1250 Wages - production OMR 10000 Wages - factory supervision OMR 2000 Indirect expenses - factory OMR 1000 Selling expenses OMR 3500 Audit charges OMR 250 Bank service charges OMR 100 Freight on materials purchased OMR 5000 Advertising Expenses OMR 1250 Profit OMR 25% on cost of production Calculate: (a) Prime Cost (b) Works Cost (c) Cost of Production (d) Cost of Sales and (e) Profit.

+Q 2From the following particulars of a manufacturing firm, prepare a statement showing: Materials used in manufacturing OMR 60000 Materials used in primary packing OMR 10000 Materials used in selling the product OMR 1500 Materials used in the factory OMR 750 Administrative expenses OMR 1250 Depreciation on office building OMR 750 Depreciation on factory building OMR1750 Materials used in the office OMR 1250 Wages - production OMR 10000 Wages - factory supervision OMR 2000 Indirect expenses - factory OMR 1000 Selling expenses OMR 3500 Audit charges OMR 250 Bank service charges OMR 100 Freight on materials purchased OMR 5000 Advertising Expenses OMR 1250 Profit OMR 25% on cost of production Calculate: (a) Prime Cost (b) Works Cost (c) Cost of Production (d) Cost of Sales and (e) Profit.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 23DQ: LO.6 Largo Company is an engineering consulting business that uses the accrual method of accounting...

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Q 2From the following particulars of a manufacturing firm, prepare a statement showing: Materials used in manufacturing OMR 60000 Materials used in primary packing OMR 10000 Materials used in selling the product OMR 1500 Materials used in the factory OMR 750 Administrative expenses OMR 1250 Depreciation on office building OMR 750 Depreciation on factory building OMR1750 Materials used in the office OMR 1250 Wages - production OMR 10000 Wages - factory supervision OMR 2000 Indirect expenses - factory OMR 1000 Selling expenses OMR 3500 Audit charges OMR 250 Bank service charges OMR 100 Freight on materials purchased OMR 5000 Advertising Expenses OMR 1250 Profit OMR 25% on cost of production Calculate : (a) Prime Cost (b) Works Cost (c) Cost of Production (d) Cost of Sales and (e) Profit PLEASE ANSWER FIRST A,B AND C SUBPART
Q 2From the following particulars of a manufacturing firm, prepare a statement showing: Materials used in manufacturing OMR 60000 Materials used in primary packing OMR 10000 Materials used in selling the product OMR 1500 Materials used in the factory OMR 750 Administrative expenses OMR 1250 Depreciation on office building OMR 750 Depreciation on factory building OMR1750 Materials used in the office OMR 1250 Wages - production OMR 10000 Wages - factory supervision OMR 2000 Indirect expenses - factory OMR 1000 Selling expenses OMR 3500 Audit charges OMR 250 Bank service charges OMR 100 Freight on materials purchased OMR 5000 Advertising Expenses OMR 1250 Profit OMR 25% on cost of production Calculate : (a) Prime Cost (b) Works Cost (c) Cost of Production (d) Cost of Sales and (e) Profit PLEASE ANSWER D AND E SUBPARTS
Q#2 The ASF Corporation manufactures one product and accounts for costs by a job orders cost system You have obtained the following information for the year ended December 31 2010 from the Corporations books and records Total manufacturing cost added during 2010 was 1,000,000 Cost of goods manufactured was 970,000 Factory overhead was applied to work in process inventory at 80% of direct labor (applied factory overhead for the year 27% of the total manufacturing cost) Beginning work in process inventory January 1 was 80% of ending work-in – process inventory December 31 Required 1. Prepare a formal statement of cost good manufactured
question 4 CTSha Sdn. Bhd., a local business involved in the manufacturing of plastic, metal and other moulds for a wide variety of industrial customers, had the following balances extracted from its books on 31 December 2020. Name of Account RM WIP - Raw materials, 1 January 2020 14,630 WIP - Factory wages, 1 January 2020 18,330 WIP - Factory overhead, 1 January 2020 21,660 Raw materials, 1 January 2020 36,700 Raw materials purchases 251,340 Transportation of raw materials 8,340 Custom duties on raw materials 9,600 Insurance on raw materials 3,500 Factory wages 285,430 Group accident insurance on factory workers 12,340 Depreciation of plant and factory machinery 48,000 Oils and lubricants 5,700 Factory supervisor's wages 30,400 Factory cleaner’s wages 12,300 Factory security's staff salaries 18,600 Factory repairs and maintenance 9,560 Factory insurance…
Question 1. Case 2. Book problem. Incomplete manufacturing costs, expenses and selling data for two different cases are shown below: Required: 1. Indicate the missing amount for each letter 2. Prepare a schedule of cost of goods manufactured 3. Prepare a schedule of cost of goods sold 4. Prepare an income statement (Optional) Case 1 Case 2 Raw materials used 9,600 g) Direct labor cost 5,000 8,000 Total Factory overhead 8,000 4,000 Total Manufacturing costs a) 16,000 Beginning work in process inventory 1,000 h) Ending work in process inventory b) 3,000 Sales revenue 24,500 i)…
QUESTION – 3 The following data have been taken from the book of Ubaida Company Ltd. For the year 2002-03. Inventories July 1 June 30 Raw Materials Rs. 36,000 Rs. 75,000 Goods In Process 90,000 75,000 Finished Goods 50,000 75,000 IQRA University, Main Campus, Karachi From the desk of Mr. Muhammad Mubeen – M.Phil(Finance)-Bilkent, Ankara, Turkey, MS(Management Science), Karachi, FPFA-5516, CIB, CIPFA(UK) [Page 2 of 7] Cost Accounting Data for the Year Sales Rs. 960,000 Purchases ( Raw Materials ) Rs. 410,000 Purchase discount 15,000 Direct Labour incurred 175,000 Purchase Return 20,000 Transportation Inward 10,000 Rent (Factory) 35,000 Fuel & Power 55,000 Rent (Office) 3,000 Utility (Factory) 13,000 Utility (Office) 1,500 Transportation Outward 15,000 Factory Supervisor Salary 8,000 Depreciation ( Furniture) 10,000 Depreciation( Machines) 20,000 Other Operating Expenses 45,000 REQUIRED: a) Statement of Cost of Goods Manufactured b) Income Statement [S.M]
4. Which of the following should be classified as part of factory overhead for Caterpillar Inc, a maker of heavy machinery and equipment? I. Steel plateII. Plant manager’s salaryIII. Interest expense on debtIV. Factory supplies used in the plantV. Vice President of Finance’s salaryVI. Amortization of patents on the new assembly process A. I, II and V are correct.B. I, II and III are correct.C. II, IV and VI are correct.D. IV, V and VI are correct.
Problem 2-62 (Static) Prepare Statements for a Manufacturing Company (LO 2-2, 4) Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Mesa, the cost accountant provides you with the following (fictitious) data for the year (in $000). Inventory information: 1/1/00 12/31/00 Direct materials $96 $110 Work-in-process 152 136 Finished goods 1,974 2,026 Other information: For the year ’00 Administrative costs $4,200 Depreciation (Factory) 5,560 Depreciation (Machines) 9,240 Direct labor 13,000 Direct materials purchased 10,300 Indirect labor (Factory) 3,340 Indirect materials (Factory) 960 Property taxes (Factory) 370 Selling costs 2,140 Sales revenue 60,220 Utilities (Factory) 1,060 Required: 1. Prepare a cost of goods sold statement. 2. Prepare an income statement.
Question#1 1. Identify whether each of the following is classified as a product cost or a period cost.______________ 1. Direct labor______________ 2. Direct materials______________ 3. Factory utilities______________ 4. Repairs to office equipment______________ 5. Property taxes on factory building______________ 6. Sales salaries Question#2 Indicate whether each of the following costs of a pencil manufacturer would be classified as direct materials (DM), direct labor (DL), or manufacturing overhead (MO).a. ____ Depreciation of pencil painting machineryb. ____ Lead inserted into pencilsc. ____ Factory utilitiesd. ____ Wages of assembly line workere. ____ Salary of supervisorf. ____ Factory machinery maintenanceg. ____ Woodh. ____ Eraser compound Question#3 Raynor Company has the following data:Direct labor $76,000Direct materials used 84,000Total manufacturing overhead 65,000Ending work in process 30,000Beginning work in process 45,000InstructionsCompute (a) total manufacturing costs…
Q. Each of the following cost items pertains to one of these companies: General Electric (a manufacturing-sector company), Safeway (a merchandising-sector company), and Google (a service-sector company): a. Perrier mineral water purchased by Safeway for sale to its customersb. Electricity used to provide lighting for assembly-line workers at a General Electric refrigerator assembly plantc. Depreciation on Google’s computer equipment used to update directories of Web sitesd. Electricity used to provide lighting for Safeway’s store aislese. Depreciation on General Electric’s computer equipment used for quality testing of refrigerator components during the assembly processf. Salaries of Safeway’s marketing personnel planning local-newspaper advertising campaignsg. Perrier mineral water purchased by Google for consumption by its software engineersh. Salaries of Google’s marketing personnel selling banner advertising Required: Just Classify each of the cost items (a–h) as an inventoriable…
PROBLEM 2–25 Working with Incomplete Data from the Income Statement and Schedule of Cost ofGoods Manufactured [ LO4 , LO5 ]Supply the missing data in the following cases. Each case is independent of the others. Case1 2 3 4Schedule of Cost of Goods ManufacturedDirect materials . . . . . . . . . . . . . . . . . . . . . . . . . $4,500 $6,000 $5,000 $3,000Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? $3,000 $7,000 $4,000Manufacturing overhead . . . . . . . . . . . . . . . . . . $5,000 $4,000 ? $9,000Total manufacturing costs . . . . . . . . . . . . . . . . . $18,500 ? $20,000 ?Beginning work in process inventory . . . . . . . . . $2,500 ? $3,000 ?Ending work in process inventory . . . . . . . . . . . ? $1,000 $4,000 $3,000Cost of goods manufactured . . . . . . . . . . . . . . . $18,000 $14,000 ? ?Income StatementSales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,000 $21,000 $36,000 $40,000Beginning fi nished goods inventory . . . . . . . .…
LO.6 Largo Company is an engineering consulting business that uses the accrual method of accounting for its services. Mango Company is a manufacturer of nuts and bolts that also uses the accrual method to account for its sales. Each company has a personnel department. How should the cost of personnel operations be treated by each of the two companies? Hint: Consider whether the UNICAP rules apply.