BLOCK E/2018/2 Rimz AG is a luxury car wheel manufacturer, which in a two-stage production process first creates the part on which the tires are mounted (unfinished This part is then decorated with very expensive and glittering precious metals on the visible side in order to process them into finished products. The production costs for the finished products amount to € 12,000 per rim and consist of 20% work-in-progress, 70% raw materials and 10% personnel expenses. Rimz AG applies the total cost method in t1 . The commodity account, the work-in-progress account and the finished goods account are managed using the contraction method. Salary payments are to be posted from the bank account without ancillary wage costs. Create the posting records for the following business transactions: 10 finished rims are produced using raw materials already available from the previous periode0 .
BLOCK E/2018/2 Rimz AG is a luxury car wheel manufacturer, which in a two-stage production process first creates the part on which the tires are mounted (unfinished This part is then decorated with very expensive and glittering precious metals on the visible side in order to process them into finished products. The production costs for the finished products amount to € 12,000 per rim and consist of 20% work-in-progress, 70% raw materials and 10% personnel expenses. Rimz AG applies the total cost method in t1 . The commodity account, the work-in-progress account and the finished goods account are managed using the contraction method. Salary payments are to be posted from the bank account without ancillary wage costs. Create the posting records for the following business transactions: 10 finished rims are produced using raw materials already available from the previous periode0 .
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BLOCK E/2018/2
Rimz AG is a luxury car wheel manufacturer, which in a two-stage production process first creates the part on which the tires are mounted (unfinished This part is then decorated with very expensive and glittering precious metals on the visible side in order to process them into finished products.
The production costs for the finished products amount to € 12,000 per rim and consist of 20% work-in-progress, 70% raw materials and 10% personnel expenses.
Rimz AG applies the total cost method in t1 . The commodity account, the work-in-progress account and the finished goods
Create the posting records for the following business transactions:
- 10 finished rims are produced using raw materials already available from the previous periode0 .
- Rimz AG sells four rims in t1 to its best customer Mr. Obomoyang for 25,000 € net per piece on target.
- In t1, € 4,000 each is paid to an employee in sales and an employee in administration.
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