Question 6 : Explain how to deal with the following in the cost accounts. Each answer should be in two orthree sentences only, showing also the appropriate journal entry, wherever necessary,(a) A shortage of 10 kg. of a store item (book value *150) was noticed during physical verification,Investigation revealed that it was due to natural causes.(b) An abnormal gain of ₹42,500 was notice in process "A" of a chemical factory at the end of month,(c) A sum of 15,000 was realized by sale of sawdust and useless scantlings in a furniture makingbusiness.(d)In a factory, using historical cost system, there was under recovery of fixed factory overheadsamounting to *24,000 at the end of the accounting period.(e)A company spent ₹15 lakhs on advertisement in the national television network before launching a newproduct.(f) A sum of ₹20,000 was incurred on printing and stationary in connection with the issue of non convertibledebentures by a company.(g) A sum of 7,500 was paid as wages to workers in a factory when there was no work due to powerfailure.(h) Overtime wages amounting to ₹500 were incurred to meet an urgent order of a customer who wantedthe delivery date to be advanced.gel)

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Answered: Question 6: Explain how to deal with…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 14P: An examination of Buckhorn Fabricators records reveals the following transactions: a. On December...

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An examination of Buckhorn Fabricators records reveals the following transactions: a. On December 31, the physical inventory of raw material was 9,950 gallons. The book quantity, using the weighted average method, was 10,000 gal @ .52 per gal. b. Production returned to the storeroom materials that cost 775. c. Materials valued at 770 were charged to Factory Overhead (Repairs and Maintenance), but should have been charged to Work in Process. d. Defective material, purchased on account, was returned to the vendor. The material returned cost 234. e. Goods sold to a customer, on account, for 5,000 (cost 2,500) were returned because of a misunderstanding of the quantity ordered. The customer stated that the goods returned were in excess of the quantity needed. f. Materials requisitioned totaled 22,300, of which 2,100 represented supplies used. g. Materials purchased on account totaled 25,500. Freight on the materials purchased was 185. h. Direct materials returned to the storeroom amounted to 950. i. Scrap materials sent to the storeroom were valued at an estimated selling price of 685 and treated as a reduction in the cost of all jobs worked on during the period. j. Spoiled work sent to the storeroom valued at a sales price of 60 had production costs of 200 already charged to it. The cost of the spoilage is to be charged to the specific job worked on during the period. k. The scrap materials in (i) were sold for 685 cash. Required: Record the entries for each transaction.
During the week of June 12, Harrison Manufacturing produced and shipped 15,000 units of its aluminum wheels: 3,000 units of Model A and 12,000 units of Model B. The following costs were incurred: Required: 1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. What if Model A is responsible for 40 percent of the materials cost? Show how the unit cost would be adjusted for this condition.
Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-17 Refer to the information for Barnard Company on the previous page. The total period expense is a. 276,000. b. 200,000. c. 76,000. d. 40,000. e. 36,000.
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
Hello, (continued from an earlier submitted question, thanks) Buck and Company incurred the following costs during August: Raw materials purchased $41,400 Direct labor ($13.6 per hour) 60,384 Manufacturing overhead (actual) 90,420 Selling expenses 31,890 Administrative expenses 14,070 Interest expense 6,112 Manufacturing overhead is applied on the basis of $20 per direct labor hour. Assume that overapplied or underapplied overhead is transferred to the cost of goods sold only at the end of the year. During the month, 4120 units of product were manufactured and 4,400 units of product were sold. On August 1 and August 31, Buck and Company carried the following inventory balances. August 1 August 31 Raw materials $19,000 $17,800 Work in progress 53,000 56,000 Finished goods 40,100 27,267 Question d: Prepare a traditional (absorption) income statement for Buck & Company for the month of…
a. Purchased 2,450 units of copper tubing on account at $52.00 per unit . The standard price is 48.50 per unit . If an amount box does not require an entry ,leave it blank . b. Used 1,900 units of copper tubing in the process of manufacturing 200 air conditioners. Ten units of copper tubing are required,at standard, to produce one air conditioner . If an amount box does not require an entry, leave it blank .
In Department III of BORK Company, a portion of the materials (a by-product) is removed further processed and sold. The Company uses the reversal cost method to account for the by-product. Data for June include: Amount of by-product removed is 2000 units; Estimated sales price of by-product after processing further is P1.20/unit. Estimated processing cost after separation is P0.30 per unit and estimated selling expenses is 10% of the sales price. The estimated profit margin is 5% of the sales price.Required. What is the total cost of the by-product? what is the gain (loss) on sale of the by-product if all of the units are sold at P1.50?
Standard Appliances obtains refrigerators for $1,640 less 27% and 6%. Standard's overhead is 18% of the selling price of $1,710. A scratched demonstrator unit from their floor display was cleared out for $1,365. a. What is the regular rate of markup on cost? %Round to two decimal places b. What is the rate of markdown on the demonstrator unit? %Round to two decimal places c. What is the operating profit or loss on the demostrator unit? Round to the nearest cent d. What is the rate of markup on cost that was actually realized? %Round to two decimal places
Emigh Corporation’s cost of goods manufactured for the just completed month was $146,000 and its overhead was overapplied by $5,000. The beginning finished goods inventory was $35,000 and the ending finished goods inventory was $37,000. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. How much was the adjusted cost of goods sold on the Schedule of Cost of Goods Sold? Multiple Choice A. $144,000 B. $146,000 C. $181,000 D. $139,000
1. A used machine with a purchase price of $33,533, requiring an overhaul costing $8,904, installation costs of $5,946, and special acquisition fees of $12,831, would have a cost basis of 2. Assume that three identical units of merchandise were purchased during October, as follows: Units Cost October 5 Purchase 1 $5 12 Purchase 1 13 28 Purchase 1 15 Total 3 $33 Assume one unit is sold on October 31 for $28. Determine cost of goods sold, gross profit, and ending inventory under the average cost method. October 31 Sales $fill in the blank 1 Cost of Goods Sold fill in the blank 2 Gross Profit $fill in the blank 3 Ending Inventory $fill in the blank 4 3. What is the total stockholders' equity based on the following account balances? Common Stock $375,000 Paid-In Capital in Excess of Par 90,000 Retained Earnings 190,000 Treasury Stock 15,000 4. The net income reported on the income statement for the current year was $210,000.…
Hello, Hello, Sorry I submitted this question earlier but one of my figures was incorrect. My error. Buck and Company incurred the following costs during August: Raw materials purchased $41,440 Direct labor ($13.6 per hour) 60,384 Manufacturing overhead (actual) 90,420 Selling expenses 31,890 Administrative expenses 14,070 Interest expense 6,112 Manufacturing overhead is applied on the basis of $20 per direct labor hour. Assume that overapplied or underapplied overhead is transferred to the cost of goods sold only at the end of the year. During the month, 4120 units of product were manufactured and 4,400 units of product were sold. On August 1 and August 31, Buck and Company carried the following inventory balances. August 1 August 31 Raw materials $19,000 $17,800 Work in progress 53,000 56,000 Finished goods 40,100 27,267 Question a-1: Prepare a statement of costs of goods manufactured for…
Brian Pogi Co. manufactured the following units: Saleable 10,000 units Unsaleable Normal Loss 400 units Abnormal Loss 600 units Manufacturing costs totaled P198,000. a. How much is the period cost? b. What amount should the entity debit to finished goods?

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