Q. The following data were taken from the records of a company. Period 1 Period 2 Period 3 Production(units) 30,000 38000 27000 Sales 30,000 27000 38000 Opening stock 11,000 Closing stock ------ 11,000 ------- Per unit cost are as follows: Direct material $ 1.5 Direct labor 1.0 Production overhead 3.0 Selling price per unit $ 9 Administrative overheads are fixed at $25000 and one third of the production overheads are fixed. Required Prepare separate income statements on full costing

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...

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The following data were taken from the records of a company. peroiod 1 period 2 period 3 production units 30000 38000 27000 sales 30000 27000 38000 Opening stock 11,000Closing stock ------ 11,000 ------- Per unit cost are as follows:Direct material $ 1.5Direct labor 1.0Production overhead 3.0Selling price per unit $ 9Administrative overheads are fixed at $25000 and one third of the production overheads are fixed. RequiredPrepare separate income statements for all three years.
Q. The following data were taken from the records of a company. Period 1 Period 2 Period 3 Production(units) 30,000 38000 27000 Sales 30,000 27000 38000 Opening stock 11,000 Closing stock ------ 11,000 ------- Per unit cost are as follows: Direct material $ 1.5 Direct labor 1.0 Production overhead 3.0 Selling price per unit $ 9…
Q No.# 2 The following data were taken from the records of a company. Period 1 Period 2 Period 3 Production(units) 30,000 38000 27000 Sales 30,000 27000 38000 Opening stock 11,000 Closing stock ------ 11,000 ------- Per unit cost are as follows: Direct material $ 1.5 Direct labor 1.0 Production overhead 3.0 Selling price per unit $ 9…
The following data were taken from the records of a company.                                                 Period 1 Period 2 Period 3 Production(units)                    30,000 38000 27000    Sales                                        30,000 27000 38000    Opening stock ------ ------ 11000 Closing stock                          ------ 11,000 ------                                                    Per unit cost are as follows: Direct material                                                $ 1.5 Direct labor                                                        1.0 Production overhead                                           3.0 Selling price per unit                                          $ 9 Administrative overheads are fixed at $25000 and one third of the…
The following data were taken from the records of a company.                                                 Period 1                       Period 2                       Period 3 Production(units)                    30,000                         38000                          27000 Sales                                        30,000                         27000                          38000 Opening stock                                                                                                 11,000 Closing stock                          ------                             11,000                         -------                                                 Per unit cost are as follows: Direct material                                                $ 1.5 Direct labor                                                        1.0 Production overhead                                           3.0 Selling price per unit                                          $ 9 Administrative…
The following data were taken from the records of a company.                                                 Period 1                       Period 2                       Period 3 Production(units)                    30,000                         38000                          27000 Sales                                        30,000                         27000                          38000 Opening stock                                                                                                 11,000 Closing stock                          ------                             11,000                         -------                                                 Per unit cost are as follows: Direct material                                                $ 1.5 Direct labor                                                        1.0 Production overhead                                           3.0 Selling price per unit                                          $ 9 Administrative…
4. Selected account balances for the year ended December 31 are provided below for MelodyCompany:Selling and Administrative salaries . . . . . . . . . . . . . . . . . . . . P110,000Purchases of raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . P290,000Direct Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?Advertising expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P80,000Manufacturing overhead . . . . . . . . . . . . . . . . . . .. . . . . . . . . . P270,000Sales commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P50,000 Inventory balances at the beginning and end of the year were as follow:Beginning of the year End of the yearRaw materials . . . . . . . . . . . . . . P40,000 P10,000Work in process . .. . . . . . . .. . . ? P35,000Finished goods . . . . . . . . . . . . . P50,000 ? The total manufacturing costs for the were P683,000; the goods available for sale totaledP740,000; and the…
B spikes Trial Balance as on 31 December 2002 Dr(Kshs) Cr(Kshs) Stock of raw materials 1.1.2002 21,000 Stock of finished goods 1.1.2002 38,900 Work in progress 1.1.2002 13,500 Wages(direct Sh.180,000: factory indirect Sh.145,000) 325,000 Royalties 7,000 Carriage inwards (on raw materials) 3,500 Purchases of raw materials 370,000 Productive machinery (cost Sh.280,000) 230,000 Accounting machinery (cost Sh.20,000) 12,000 General factory expenses 31,000 Lighting 7,500 Factory power 13,700 Administrative Salaries 44,000 Sales representatives’ salaries 30,000 Commission on sales 11,500 Rent 12,000 Insurance 4,200 General administration expenses 13,400 Bank charges 2,300 Discounts allowed…
2 ABC supplier incurred the following actual costs during the year just ended: Direct material used $210,500 Direct labour 185 000 Manufacturing overhead 380,000. The inventory balances, on 1 January, were as follows: Raw material $47 000 Work in process $61 500 Finished goods $60 000. Each of these inventory balances was 10 percent higher at the end of the year. The cost of goods sold is: Select one: a. $765,250 b. $762,850 c. $760,000 d. None of the answers given 3 David Furniture Ltd incurred the following actual costs during the year just ended: Direct material used $200,020 Direct labour $190,000 Manufacturing overhead $278, 000. The inventory balances, on 1 January, were as follows: Raw material $47 000; Work in process $61 500 Finished goods $65 000. Each of these inventory balances was 10 percent lower at the end of the year. The cost of goods manufactured is: Select one: a. None of the answers given b. $674,000 c. $670,000 d. 650,000 4 ABC Ltd prepares…
Q1) A company has the following accounts’ balances at the end of the year: Building (Net) 20 year life left $ 4,000,000. The replacement cost for the Building is 4,500,000 USD. Inventory 40,000 unit at $20 each with a replacement cost $22. And cost of goods sold of $500,000 with a replacement cost of 520,000. Required: Indicate how the above information would affect the financial statements of the company when adopting the current cost accounting model. You need to determine the realized and unrealized profit.
Details of a company's first two years of operations are shown: Year 1 Year 2 Sales @ £30 £1,200,000 £1,500,000 Opening stock in units 0 5000 Units produced 45000 45000 Units sold 40000 50000 Fixed selling and administrative expenses £110,000 £110,000 The company's unit product cost is computed as follows: £ Direct materials 4 Direct labour 7 Variable manufacturing overhead 1 Fixed manufacturing overhead (£180,000/45,000 units) 4 Unit product cost 16 a) Prepare a profit and loss account for each year using Absorption costing.
Beta spikes Ltd Trial Balance as on 31 December 2002 Dr(Kshs) Cr(Kshs) Stock of raw materials 1.1.2002 21,000 Stock of finished goods 1.1.2002 38,900 Work in progress 1.1.2002 13,500 Wages(direct Sh.180,000: factory indirectSh.145,000) 325,000 Royalties 7,000 Carriage inwards (on raw materials) 3,500 Purchases of raw materials…

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