Nuts & Legumes is one of the major suppliers of pulses and dry fruits in Pakistan. Overhead is applied to jobs on the direct labor cost basis as they are using a job-order costing system. An estimated $330,000 of manufacturing overhead for an estimated activity level of $200,000 direct labor dollars and this data is used to calculate the predetermined overhead rate. Opening inventory balances were as follows: Finished goods . . . . . . . . . . . . . . . . . . . . $40,000 Work in process . . . . . . . . . . . . . . . . . . . . $10,000 Raw materials . . . . . . . . . . . . . . . . . . . . . $25,000 During the year, the following transactions were completed: Raw materials requisitioned for use in production, $280,000 (21.43% of this material were indirect). They purchased Raw materials of $275,000. From A&H foods. Human resource department provides the following data: Total Labor Cost was $252,000 out of which $72,000 was indirect labor Sales & Admin department salaries were $153,000 (Admin $90,000 & Sales $63,000) $18,000 is rent for the year out of which $5,000 is related to admin & selling activities). Service costs incurred in the factory, $57,000. Marketing costs incurred $140,000. Depreciation charged on equipment used during the year $100,000 out of which $12,000 was not related to equipment used in production Closing Work in Process $32,000 The total cost to manufacture these goods according to their job cost sheets was $700,000 Sales made during the year $1,250,000. According to their job cost sheets, Goods costing $675,000 was completed. Required: Prepare the following with the help of the information given above. Schedule of Cost of Goods Manufactured & Schedule of Cost of Goods Sold Income Statement
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Question no 1: Nuts & Legumes is one of the major suppliers of pulses and dry fruits in Pakistan. Overhead is applied to jobs on the direct labor cost basis as they are using a job-order costing system. An estimated $330,000 of manufacturing overhead for an estimated activity level of $200,000 direct labor dollars and this data is used to calculate the predetermined overhead rate. Opening inventory balances were as follows:
Finished goods . . . . . . . . . . . . . . . . . . . . $40,000
Work in process . . . . . . . . . . . . . . . . . . . . $10,000
Raw materials . . . . . . . . . . . . . . . . . . . . . $25,000
During the year, the following transactions were completed:
- Raw materials requisitioned for use in production, $280,000 (21.43% of this material were indirect).
- They purchased Raw materials of $275,000. From A&H foods.
- Human resource department provides the following data:
Total Labor Cost was $252,000 out of which $72,000 was indirect labor
Sales & Admin department salaries were $153,000 (Admin $90,000 & Sales $63,000)
- $18,000 is rent for the year out of which $5,000 is related to admin & selling activities).
- Service costs incurred in the factory, $57,000.
- Marketing costs incurred $140,000.
Depreciation charged on equipment used during the year $100,000 out of which $12,000 was not related to equipment used in production- Closing Work in Process $32,000
- The total cost to manufacture these goods according to their
job cost sheets was $700,000 - Sales made during the year $1,250,000.
- According to their job cost sheets, Goods costing $675,000 was completed.
Required:
Prepare the following with the help of the information given above.
-
Schedule of Cost of Goods Manufactured & Schedule of Cost of Goods Sold - Income Statement
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
