XYZ Ltd manufactures furniture. Due to a fire in the administrative offices, the accounting records for November of the current year were partially destroyed. You have been able to piece together the following information from the ledger. By examining various source documents and interviewing several employees, you are able to gather the following additional information: • The budgeted overhead for the current year is $492,000 • The accounts payable (A/P) balance on 30 November is 40 percent of A/P beginning balance. Only purchases of raw material are credited to accounts payable. A payment of $85 000 was made on 20 November. • The actual manufacturing overhead for November is $65 000. • November’s cost of goods sold (CGS) amounts to $165 000. • The 30 November balance in finished goods inventory is $7 000. • Budgeted direct labour cost for the current year is $820 000. The direct labour rate is $25 per hour. • Collection of accounts receivable during November 95% of credit sales. • Payments of $81 500 were made to direct labour employees during November. The 31 October balance in the wages payable account is $4 000. • An analysis of the furniture still in process on 30 November reveals that so far, these items have required 450 hours of direct labour and $21 500 of direct material. • Overhead is applied using an annual predetermined overhead rate based on direct labour hours. Raw material Inventory Account payable 45 000 10 000 Bal. 31/10 Bal. 30/11 50, 000 Work in process inventory Finished Goods Inventory Bal. 31/10 8 500 Bal. 31/10 35 000 Manufacturing overhead Cost of goods sold 65 000 Wages payable Sales revenue 2 500 Bal. 30/11 Account receivable Bal. 31/10 10, 000 https://www.coursehero.com/file/68475549/TACC607-Managerial-Accounting-T1-2020-final-exampdf/ This study resource was shared via CourseHero.com 5 • Sales revenue in November is 125 per cent of cost of goods sold. All sales are on credit. Required: Calculate the following amounts: (a) Cost of raw material purchased during November (b) 30 November balance in work in process inventory (c) Sales revenue for November (d) Direct labour added to work in process during November (e) 30 November balance in accounts receivable (f) Applied overhead for November (g) Cost of goods completed during November (h) Raw material used during November (i) 31 October balance in raw material inventory (j) Over applied or under applied overhead for November
XYZ Ltd manufactures furniture. Due to a fire in the administrative offices, the accounting records for November of the current year were partially destroyed. You have been able to piece together the following information from the ledger. By examining various source documents and interviewing several employees, you are able to gather the following additional information: • The budgeted overhead for the current year is $492,000 • The accounts payable (A/P) balance on 30 November is 40 percent of A/P beginning balance. Only purchases of raw material are credited to accounts payable. A payment of $85 000 was made on 20 November. • The actual manufacturing overhead for November is $65 000. • November’s cost of goods sold (CGS) amounts to $165 000. • The 30 November balance in finished goods inventory is $7 000. • Budgeted direct labour cost for the current year is $820 000. The direct labour rate is $25 per hour. • Collection of
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