Edwara Ltd comprises of three production departments and two service departments.The following information is provided for Edward Ltd for 2019.£Supervisor's salaries MachiningFactory RentHeat and lightGeneral RepairsMachine DepreciationMachine insuranceBusiness Rates300,000Assembly 200,000Finishing 250,000Canteen 120,000Maintenance 150,000£300,000200,00060,00080,00090,00075,000Floor space occupied (m2)400Value of machinery (£'000) 300Service carried out by:CanteenMachining Assembly Finishing CanteenMaintenanceThe service departments work for the other departments as follows:20040030%25%20020030%50%15050Machining Assembly Finishing Canteen Maintenance40%25%Maintenance5050Required:a. Using Edward's Ltd overhead analysis sheet for 2019, determine the overheadallocated and apportioned to each of the five departments.b. Calculate the total overheads included in the production departments after thereapportionment of the service department using direct method

According to the question given, we need to prepare the statement of primary and secondary overhead…

Edward Ltd comprises of three production departments and two service departments. The following information is provided for Edward Ltd for 2019. £ Supervisor's salaries Machining 300,000 Assembly 200,000 Finishing 250,000 Canteen 120,000 Maintenance 150,000 £ 300,000 200,000 60,000 80,000 90,000 75,000 Factory Rent Heat and light General Repairs Machine Depreciation Machine insurance Business Rates Machining Assembly Finishing Canteen 200 200 150 400 200 50 Floor space occupied (m2) 400 Value of machinery (£'000) 300 The service departments work for the other departments as follows: Service carried out by: Canteen Maintenance 30% 25% Machining Assembly Finishing Canteen Maintenance 30% 50% Maintenance 40% 25% 50 50 Required: a. Using Edward's Ltd overhead analysis sheet for 2019, determine the overhead allocated and apportioned to each of the five departments. b. Calculate the total overheads included in the production departments after the reapportionment of the service department using direct method

Edward Ltd comprises of three production departments and two service departments. The following information is provided for Edward Ltd for 2019. £ Supervisor's salaries Machining 300,000 Assembly 200,000 Finishing 250,000 Canteen 120,000 Maintenance 150,000 £ 300,000 200,000 60,000 80,000 90,000 75,000 Factory Rent Heat and light General Repairs Machine Depreciation Machine insurance Business Rates Machining Assembly Finishing Canteen 200 200 150 400 200 50 Floor space occupied (m2) 400 Value of machinery (£'000) 300 The service departments work for the other departments as follows: Service carried out by: Canteen Maintenance 30% 25% Machining Assembly Finishing Canteen Maintenance 30% 50% Maintenance 40% 25% 50 50 Required: a. Using Edward's Ltd overhead analysis sheet for 2019, determine the overhead allocated and apportioned to each of the five departments. b. Calculate the total overheads included in the production departments after the reapportionment of the service department using direct method

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

The following information relates to the costs of Carox Limited for November 2021. N$'000 Salaries Factory workers (1) 61 000 Factory management (2) 55 000 Accounting 10 000 Directors 40 000 Depreciation (3) Factory equipment 10 000 Office equipment 2 200 Buildings 3 500 Purchases from creditors Raw material 95 000 Water and electricity (4) Factory 22 000 Storeroom 3 000 Office 4 000 Other Cleaners (office) (fixed rate as per contract) 1 800 Entertainment (amount is spent every year) 600 External audit fees as per contract 1 000 Additional Information: Factory workers are paid based on the hours worked. Factory management is employed as permanent employees who are paid a fixed salary irrespective of the hours worked. All the assets are depreciated on the straight-line method over the useful life of the asset, except…
These data relates to Judy Company’s July 2020 operations: Materials, beginning P 7,000 Materials, Ending P9,000 WIP, Beginning 7,500 WIP, Ending 3,500 Finished Goods, beg. 10,000 Finished Goods, End. 12,000 Materials used 46,800 Direct Expenses 400 Selling and general expenses 6,700 Direct Labor 8,000 Factory overhead is applied at the rate of 80% of direct labor cost. Required: Compute for the following (Show your solution) : 1. Cost of materials purchased 2. Cost of goods manufactured 3. Cost of goods sold and 4. Conversion Cost
The Wooden Chair Group has the following sales and cost data for the year ending 2019: Raw Materials Inventory, beginning Raw Materials Inventory, ending 5,000 6,000 Work in Process Inventory, beginning Work in Process Inventory, ending 11,000 10,000 Finished Goods Inventory, beginning Finished Goods Inventory, ending 5,000 8,000 Selling and administrative expenses Materials Purchased - Lumber Materials Purchased Screws and Glue 19,000 13,000 3,000 Wages - Direct Assembly Workers Wages - Factory Supervisor Wages - Factory Janitor 25,000 3,000 2,000 Sales 220,000 Factory Depreciation 25,000 Factory Utilities Maintenance of Factory 2,000 4,000 Insurance for Factory 1,000 Using the next two pages prepare: 1. A cost of goods manufactured statement 2. An income Statement Sheet2 Sheet3 Sheet1 +. dy
At May 31, 2020, the account of Vaugh Company show the following. 1. May 1 Inventories-finished goods $14,300, work in process $15,100 and raw materials $8,900. 2. May 31 inventories-finished goods $9,600, work in process $16,100, and raw materials $7,600. 3. Debit posting to work in process were direct materials $62,800, direct labor $53,100, and manufacturing overhead applied $42,300. (Assume that overhead applied was equal to overhead incurred) 4. Sales revenue totaled $216,200 Prepare a condensed cost of goods manufactured schedule.
Monty Corporation has the following cost records for June 2022. Indirect factory labor $4,500 Factory utilities $390 Direct materials used 19,600 Depreciation, factory equipment 1,370 Work in process, 6/1/22 2,940 Direct labor 39,200 Work in process, 6/30/22 3,720 Maintenance, factory equipment 1,760 Finished goods, 6/1/22 Finished goods, 6/30/22 4,900 Indirect materials 2,250 7,350 Factory manager's salary 2,940 (a) Prepare a cost of goods manufactured schedule for June 2022. MONTY CORPORATION Cost of Goods Manufactured Schedule For the Month Ended June 30, 2022 > > > $ $ $ $
The Hardville Corporation has the following account balances (in millions): E (Click the icon to view the account balances.) Prepare a statement of comprehensive income and a supporting schedule of cost of goods manufactured for the year ended December 31, 2019. Indirect manufacturing costs: Depreciation-plant, building, and equipment 97 Indirect manufacturing labour 79 Miscellaneous plant overhead 39 Account balances Plant supervisory salaries 7 Plant utilities 39 Plant supplies used 11 272 For Specific Date For Year 2019 Direct materials, January 1, 2019 $ 12 Purchases of direct materials $ 338 Add: Manufacturing costs incurred during 2019 Work in process, January 1, 2019 11 Direct manufacturing labour 102 Beginning work-in-process inventory, Jan 1, 2019 11 Finished goods, January 1, 2019 89 Depreciation-plant, building, and equipment 97 Deduct: Total manufacturing costs to account for Plant supervisory salaries 7 Direct materials, December 31, 2019 22 Miscellaneous plant overhead 39…
Simply Sweets has provided the following relating to the most recent month (August 31, 2020) of operations, for their main product, cookies. Baker's salary 3,000 Finished goods inventory, beginning 1,000 Finished goods inventory, ending 3,000 General & administrative expenses 3,500 Indirect materials 500 Production Supervisor, Salary 4,000 Purchases of raw materials 11,000 Raw materials inventory, ending 2,000 Raw materials inventory, beginning 1,000 Rent on production factory 2,000 Rent, retail store 1,000 Sales 40,000 Utilities on production factory 500 Utilities, retail store 500 Wages, retail staff 3,000 WIP inventory, beginning 2,500 WIP inventory, ending 4,500 Required: Prepare a schedule of cost of goods manufactured in good format Calculate the cost of goods sold Do not give answer in image
Frosting Corp. has provided the following relating to the most recent month (August 31, 2020) of operations, for their main product, cupcakes. Baker's salaries 20,000 Finished goods inventory, beginning Finished goods inventory, ending General & administrative expenses 18,000 20,000 20,000 Indirect materials 17,500 Production supervisor, salary 21,000 Purchases of raw materials 28,000 Raw materials inventory, ending Raw materials inventory, beginning Rent on production factory 19,000 18,000 19,000 Rent, retail store 18,000 Sales 243,000 Utilities on production factory 17,500 Utilities, retail store 17,000 Wages, retail staff WIP inventory, beginning WIP inventory, ending 20,000 19,500 21,500 Required: 2. Prepare the cost of goods sold section of the income statement 3. Prepare an income statement in good format
ABC Company has the following records for the period ended 31 December 2020. Raw Material purchased OMR 125000 Purchase returns of raw materials OMR 5000 Factory maintenance OMR 3500 Salary of office staff OMR 22400 Power and heat-factory OMR 5000 Insurance expense-factory OMR 3000 Depreciation-factory builo OMR 6500 and equipment Purchase Expenses on raw material OMR 2000 Insurance expense-Office OMR 8000 Inventories,1 January 2020: Raw Materials OMR 600Q Direct labor OMR 600on Direct Expenses OMR 4000 Inventories, 31 December 2020: Raw Material OMR 8000 What is the Production Cost (Cost of production) for ABC Company?
At May 31, 2020, the accounts of Sheffield Company show the following. 1. May 1 inventories—finished goods $ 14,800, work in process $ 17,600, and raw materials $ 8,600. 2. May 31 inventories—finished goods $ 9,600, work in process $ 17,000, and raw materials $ 8,000. 3. Increases to work in process were direct materials $ 64,300, direct labor $ 51,400, and manufacturing overhead applied $ 42,100. 4. Sales revenue totaled $ 217,000. (a) Prepare a condensed cost of goods manufactured schedule for May 2020. SHEFFIELD COMPANYCost of Goods Manufactured Schedulechoose the accounting periodchoose the accounting period select an opening section nameselect an opening section name $ enter a dollar amountenter a dollar amount select an account titleselect an account title $ enter a dollar amountenter a dollar amount select an account titleselect an account title enter a dollar amountenter a dollar amount…
The following information is obtained from the records of Al Marai manufacturing company for the month of January 2021. Particulars Amount (OMR) Direct material consumed 41,000 Direct manufacturing wages 17,000 Indirect manufacturing wages 5,500 Supervisor salary 2,000 Factory rent 1,500 Factory lighting 1000 Indirect materials 1200 Depreciation of machines Office overheads 5,000 Office salaries 1,000 Office expense 800 Selling and distribution 2,300 overheads Sales 95,000 Based on the above information prepare the cost sheet and select the correct answer for the following elements: The amount of prime cost is OMR; The amount of works cost is OMR; The cost of production is OMR; The total cost of sales is OMR; The profit is OMR;
Al Shams Manufacturing LLC has furnished the following information for the month of March 2019: Materials used is RO 45,000, Direct labor is RO 28,000, Labor hours worked is 7,000, Hours of machine operation is 5,000 and Overhead cost is RO 21,000. The department during the period has executed an order (job). The relevant information is as follows: Materials used is RO 2,000, Direct labor is RO 1,200, Labor hours worked is 500 and Hours of machines operation is 225. Calculate the overhead chargeable to the job based on percentage of direct material cost. a. RO 945 b. RO 900 c. RO 933 d. RO 1500