Construction Ltd is engaged on two contracts A and B during the year. Following particular Is are obtained at the year end ( Dec. 31): Contract A Contact B Date of Commencement Apr-01 Sep-01 $ $ Contract price 6,00,000 5,00,000 Materials issued 1,60,000 60,000 Materials returned 4,000 2,000 Materials at size (Dec.31) 22,000 8,000 Direct Labour 1,50,000 42,000 Site Expenses Establishment Expenses 66,000 25,000 80,000 35,000 7,000 Plant installed at site 70,000 Value of Plant (Dec. 31) Cost of contract not yet certified 65,000 64,000 23,000 10,000 Value of contract certified 4,20,000 1,35,000 Cash received from contractees 3,78,000 1,25,000 Architect's Fees 2,000 1,000 During the Period materials amounting to $ 9,000 have been transferred from contract A to contact B. Your are required to show: (a) Contract accounts (b) Contractee's accounts.

Construction Ltd is engaged on two contracts A and B during the year. Following particular Is are obtained at the year end ( Dec. 31): Contract A Contact B Date of Commencement Apr-01 Sep-01 $ $ Contract price 6,00,000 5,00,000 Materials issued 1,60,000 60,000 Materials returned 4,000 2,000 Materials at size (Dec.31) 22,000 8,000 Direct Labour 1,50,000 42,000 Site Expenses Establishment Expenses 66,000 25,000 80,000 35,000 7,000 Plant installed at site 70,000 Value of Plant (Dec. 31) Cost of contract not yet certified 65,000 64,000 23,000 10,000 Value of contract certified 4,20,000 1,35,000 Cash received from contractees 3,78,000 1,25,000 Architect's Fees 2,000 1,000 During the Period materials amounting to $ 9,000 have been transferred from contract A to contact B. Your are required to show: (a) Contract accounts (b) Contractee's accounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

c) Having carried out the allocation and apportionment process of its operations, the management accountant of Flowers Ltd is left with the reapportionments to carry out. The data below represent the current state of the overhead distribution summary and the additional detail that is needed to answer the question that follows. Flower Ltd overhead distribution summary Production department T M Amount in Amount in Kes Kes 25,000 20,000 Total b/d Reapportionment percentages A (%) B (%) Required Production department M T 30 20 20 25 F Amount in Kes 30,000 F 25 30 i. The repeated distribution method ii. Algebraic method Service department A Amount in Kes 10,000 Service department A - B Amount in Kes 20,000 25 B 25 a) Reapportion the service department overheads into the production departments on the basis of each of the following:
Ff.96.
Bella Construction Co. uses the percentage-of-completion method. In 20x1, Bella began work on a contract for $2,477,005; it was completed in 20x2. The following cost data pertain to this contract: Year ended December 31, 20x1 Year ended December 31, 20x2 Costs incurred during the year $869,041 $559,369 Estimated costs to complete at the of year $494,825 - The amount of gross profit to be recognized on the income statement for the year ended December 31, 20x2 is: a. $553,770 b. $339,315 c. $1,048,595 d. $1,113,139
During 2007, Frank Corp. started a construction job with a total contract price of $2,800,000. It was completed on December 15, 2008. Additional data are as follows: 2007 2008 Actual costs incurred in current year $1,080,000 $1,220,000 Estimated remaining costs 1,080,000 — Billed to customer 960,000 1,840,000 Received from customer 800,000 1,920,000 Under the completed-contract method, what amount should Frank recognize as gross profit for 2008? Group of answer choices 500,000 $250,000 $180,000 $380,000
The following selected account balances are as at the end of the current period. Manufacturing direct labour $140,000 Direct materials purchased Variable manufacturing overhead Depreciation on plant equipment and building Sales commissions Direct materials used Head office overhead costs Marketing costs What are the conversion costs for the period? O $300,000 O $420,000 O $120,000 O $215,000 150,000 75,000 85,000 35,000 120,000 110,000 90,000
Submit UOJPBY781 Corp.s manufacturing overhead for the year was estimated to be $783,200 at the begining of the year. O Quiz Tools At the end of the year, UOJPBY781's actual direct labor-hours for the year were 36,260 hours. (ID#65031) UOJPBY781's actual manufacturing overhead for the year was $760,000. 100% UOJPBY781's manufacturing overhead for the year was overapplied by $37,720. Collapse Q.) If UOJPBY781's predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been: (Round your intermediate calculations to 2 decimal places.) Multiple Choice 32,831 direct labor-hours 36,260 direct labor-hours 35,600 direct labor-hours MacBook Air ...
Munoz Manufacturing Company began operations on January 1. During the year, it started and completed 1,730 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs: Raw materials purchased and used—$3,080. Wages of production workers—$3,510. Salaries of administrative and sales personnel—$1,970. Depreciation on manufacturing equipment—$5,520. Depreciation on administrative equipment—$1,755. Munoz sold 1,210 units of product. Required Determine the total product cost for the year. Determine the total cost of the ending inventory. (Do not round intermediate calculations.) Determine the total of cost of goods sold. (Do not round intermediate calculations.) a. Total product cost b. Total cost of ending inventory c. Total cost of goods sold
Accounting July 5 Received material costing $6,000 from a supplier. The material was purchased on account. 9 Requisitioned $18,000 of material for use in the factory, consisting of $15,000 of direct material and $3,000 of indirect material. 11 Recorded the factory payroll: $40,500 of direct labor and $4,500 of indirect labor. 17 Incurred various overhead costs totaling $42,000. (Credit Accounts Payable.) 20 Applied $60,000 of manufacturing overhead to the products being manufactured. 23 Completed product costing $48,000 and moved it to the warehouse. Sold goods with a product cost of $9,000 on account for $15,000. 26 a. and b. Record the transactions listed above in general journal form, post relevant portions to the four T-accounts set-up below, and balance the four accounts. General Journal Date Description Debit Credit July 5 Materials inventory 0 x Accounts payable July 9 Work in process inventory 0 x Manufacturing overhead Materials inventory July 11 Work in process inventory…