List the journal entries from the purchase of raw materials up to the determination of the gross result of the first quarter of 2012, taking into account the adjustment of the imputation difference of general industrial expenses.
The industrial company "ZONES S.A." manufactures leather belts to order from its customers. The last quarter of 2012 was entirely occupied with the execution of order 135. The order concerned the
construction of 1,000 zones. According to the technical specifications set by the customer, each belt requires 200 grams of leather and 50 grams of metal parts. Additional information is provided:
At the beginning of the quarter the company had no opening stock of 'A' materials. Both the leather and the metal components are considered as Inmaterials.
Purchased on credit 300 kg of leather for €4,500 and 100 kg of metal parts for €6,000.
The net (after deductions) hourly wage of the workers is equal to €8 and 2,000 direct labor hours were used to complete order 135.
Deductions represent 20% and employer contributions 10% of the nominal hourly wage. The salaries for the quarter were paid as usual.
Paid for rents €3,000 and for factory insurance premiums €5,000. Rents and insurance premiums are the only fixed costs of the quarter.
Industrial
The order was delivered to the customer €55,000.
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The company adjusts the imputation difference by allocating it to the accounts Work in Progress, Finished Goods and Cost of Sold in the ratio of 25%, 25% and 50% respectively.
Wanted:
1. List the
general industrial expenses.
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