b) State the journal entries necessary to record the following transactions in the general journal. (i) Total materials issued to production (ii) Manufacturing labour incurred (iii)Assign manufacturing labour to the appropriate accounts
b) State the journal entries necessary to record the following transactions in the general journal. (i) Total materials issued to production (ii) Manufacturing labour incurred (iii)Assign manufacturing labour to the appropriate accounts
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Question
b) State the
(i) Total materials issued to production
(ii) Manufacturing labour incurred
(iii)Assign manufacturing labour to the appropriate accounts
![GROUP Assignment _ Product Costing
PART 1
(25 marks)
Exclusive Souvenirs Hut does customize, hand-crafted memorabilia for hotels, in which each batch of
souvenirs is a job. The company uses a perpetual inventory system and has a highly labour-intensive
production process, so it assigns manufacturing overhead based on direct labour cost. Exclusive's
predetermined overhead rate for 2020 was computed from the following data:
Total estimated factory overhead
$2,400,000
$2,000,000
Total estimated direct labour cost
The WIP account given below relates to the activities of Exclusive Souvenirs for the month of June:
WIP Inventory A/C
June 1 Balance b/f
$15,000
Direct Materials Used
123,000
Additional data:
• Total material requisitioned.
• Manufacturing Labour Costs incurred
• Other manufacturing overheads incurred
• Two jobs were completed with total costs of $183,000 and $105,000 respectively. They were sold to
the hotel on account at a margin of 33 1/3% on sales.
$153,000
$163,500 (75% represents direct labour)
$94,275](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc8b46fe-3b4e-40ea-990c-f194d49c409c%2F49f4f51f-76e6-4a90-958f-1a5583c62f5b%2Fevqvp2_processed.png&w=3840&q=75)
Transcribed Image Text:GROUP Assignment _ Product Costing
PART 1
(25 marks)
Exclusive Souvenirs Hut does customize, hand-crafted memorabilia for hotels, in which each batch of
souvenirs is a job. The company uses a perpetual inventory system and has a highly labour-intensive
production process, so it assigns manufacturing overhead based on direct labour cost. Exclusive's
predetermined overhead rate for 2020 was computed from the following data:
Total estimated factory overhead
$2,400,000
$2,000,000
Total estimated direct labour cost
The WIP account given below relates to the activities of Exclusive Souvenirs for the month of June:
WIP Inventory A/C
June 1 Balance b/f
$15,000
Direct Materials Used
123,000
Additional data:
• Total material requisitioned.
• Manufacturing Labour Costs incurred
• Other manufacturing overheads incurred
• Two jobs were completed with total costs of $183,000 and $105,000 respectively. They were sold to
the hotel on account at a margin of 33 1/3% on sales.
$153,000
$163,500 (75% represents direct labour)
$94,275
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