2075 Q.No. 11 Pokhara Factory has three production dep department. Other details are as follows: Particulars Direct material (Rs) Direct wages (Rs) Labour hours Area in sq feet Light points Horse Power Fixed Asset value (in Lakh) Rs Service rendered by service department Overhead for the period are as follows: Rent Electric light Power Production Departments A 20,000 25,000 3,000 400 560 10 50% Depreciation General overhead Required: (a) Total overhead of each department (b) Labour hour rate of production departments LUTION B 30,000 20,000 2,000 300 335 30% C 20,000 15,000 2,000 200 223 20% Service Department S 5,000 5,000 100 212 Rs. 10,000 Rs. 12,000 Rs. 15,000 Rs. 20,000 Rs. 13,000

2075 Q.No. 11 Pokhara Factory has three production dep department. Other details are as follows: Particulars Direct material (Rs) Direct wages (Rs) Labour hours Area in sq feet Light points Horse Power Fixed Asset value (in Lakh) Rs Service rendered by service department Overhead for the period are as follows: Rent Electric light Power Production Departments A 20,000 25,000 3,000 400 560 10 50% Depreciation General overhead Required: (a) Total overhead of each department (b) Labour hour rate of production departments LUTION B 30,000 20,000 2,000 300 335 30% C 20,000 15,000 2,000 200 223 20% Service Department S 5,000 5,000 100 212 Rs. 10,000 Rs. 12,000 Rs. 15,000 Rs. 20,000 Rs. 13,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2
The Baker Company manufactures a product in a single process. The following information isavailable:Input material 5,000 kilos valued at $18,000Material added $4,000Direct labour cost incurred $14,000Manufacturing overhead incurred $20,500Normal losses 10% of inputScrap value of losses $5.00 per unitUnits completed and transferred out 4,300 unitsi) Calculate the cost per completed unitii) What is the value of the units completed and transferred to finished goods?iii) What is the value of the unexpected losses?iv) What is the manufacturer’s true loss?v) Prepare the journal entries necessary to record the assignment of direct materials anddirect labour and the allocation of manufacturing overhead to the process. Also, give thejournal entries for the transfer of units completed to Finished Goods Inventory.
O e. $2,636 Company XYZ uses machine hours to allocate its manufacturing overhead. The company estimates that total machine hours to be operated next year are 190,000 hours. The estimated variable overhead is $9 per hour and the estimated fixed overhead costs are $152,000. Calculate the predetermined overhead rate. Select one: O a. $10.80 O b. $9.80 O c. $0.10 O d. $0.80 O e. None of the answers given Finish attempt . ge OADUa Prisc F9 F6 F7 F3 F4 F2 23 24 8 6 3
Question: Pioner limited makes four component A, B, C and D for which cost in the forthcoming year are expected to be as follows: A B C D Production (units) 22,000 16,000 26,000 18,000 Rupees per unit Direct material 32 28 36 40 Direct labour 30 28 32 28 Variable Overhead 6 8 4 4 68 64 72 72 A sub-contractor has offered to supply units of A, B, C and D for Rs. 75, Rs. 71, Rs. 73 and Rs. 65 respectively. Required: Which product should buy or make.
24. The following fixed overhead data relates to a company that uses machine hours to allocate fixed manufacturing overhead: Production Machine-hours Fixed overhead costs Actual 41,000 units 6,020 hours $125,500 What is the amount of fixed overhead allocated to production? A) $117,000.00 B) $123,000.00 C) $125,500.00 D) $128,210.13 Production Machine-hours Fixed overhead costs 25. The following fixed overhead data relates to a company that uses machine hours to allocate fixed manufacturing overhead: B) $400 unfavorable C) $1,056 favorable D) $1,056 unfavorable Static Budget 39,000 units 5,850 hours $117,000 Actual 53,400 units 1,960 hours $86,520 What is the fixed overhead spending variance? A) $400 favorable Static Budget 53,000 units 2,120 hours $86,920
Compute factory overhead cost from the following costs: Depreciation on factory buildings $ 45,950 Depreciation on office equipment 32,980 Direct materials used 96,840 Indirect labor $ 6,580 a.$78,930 b.$73,000 c.$96,840 d.$52,530
A product ‘Riddle’ is manufactured by two distinct processes, namely: Process 1 and Process 2. During the month of March 2020, the following information was obtained with respect to this product. Process 1 Direct Material 1,000 kg at RM25 per kg Direct Expenses RM24,000 Direct Labour RM15,000 Additional information: (i) Overhead is absorbed by the process on a basis of direct labour cost rate of 70%. (ii) Actual output is 950kg. Process 2 Direct Material 600 kg at RM50 per kg Direct Expenses RM12,000 Direct Labour RM10,000 Additional information: (i) Overhead is absorbed by the process on a basis of direct labour cost rate of 40%. (ii) Actual output is 1,350 kg. Normal loss is estimated at 10% of total input for each process. All losses can be sold at RM2 per kg. Required to prepare the following: Process 1 account.…
2. XYZ Co. manufactures a high-quality product which goes through two departments; mixing department and finishing department. Beg WIP Inv.: 8,000 units Raw Material $45,600 $49,300 $43,720 $81,200 D/L incurred in current period $206,700 $186,680 30,000 Direct Labor Manuf. Overh. D/M used in current period M/O applied Units completed and T/O End. WIP Inv.: 10,000, D/M 100%, Conv. 20%. a) Prepare the production report b) Prepare the journal entries for -release of D/M, -incurrance of D/L, -application of M/O, and - transferring units completed to mixing dept.
Ilustration 5.8: From the following information, compute machine hour rate : Rs.44,000 Rs.4,000 Rs.25,000 Cost of the machine Scrap value Rent for the workshop(per annum) General lighting for the workshop (per month) Power consumption 20 units per hour Rs.160 : Rs.20 per 100 units Administrative expenses allocated to the machine (p.a.) : Rs.4,000 Repairs and maintenance Workshop supervisor's salary (per month) Estimated working time per year Setting up time which is regarded as productive time (p.a.) : 75% of depreciation Rs.3,000 : 50 weeks of 40 hours : 200 hours Effective life of the machine 10 years The machine occupies 1/4" area of the workshop. The supervisor is expected to devote 1/3rd of his time in supervising the machine. [Rs.18.47]
Manufacturing overhead allocated for 20X6 is: Select one: a. $252,000 b. $220,500 c. $450,450 d. $264,000
Journalize the following transactions: Materials used in production, $40,000 Paid plant supervisor’s salary, $6,000 Plant depreciation, $10,000 Production labor costs incurred, $80,000 MOH is allocated at the rate of 120% of direct labor costs Cost of goods manufactured, $200,000 Revenue on account, $450,000 Cost of goods sold, $300,000 Paid advertising costs, $90,000
Problem No. 3 Calculate the (1) Total Manufacturing Overhead, (2) Selling Expenses and (3) Administrative Expenses incurred by EFG Corp. Materials used (including Php70,000 of IM) Php 780,000.00 Labor Cost (including Php40,000 IL) 540,000.00 Supervisor Salary - plant Utilities - plant Salesperson's salaries Advertising Expenses Insurance & Property taxes - plant Insurance & Property taxes - central office 600,000.00 60,000.00 320,000.00 55,000.00 150,000.00 200,000.00