Question 2Edward 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 250,000Canteen120,000Maintenance 150,000£Floor space occupied (m2)400Value of machinery (£'000) 300Service carried out by:Canteen300,000200,00060,00080,00090,00075,000MaintenanceMachining Assembly Finishing Canteen15050The service departments work for the other departments as follows:20040030%25%20020030%50%Machining Assembly Finishing Canteen MaintenanceMaintenance40%25%5050Required: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…

Question 2 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 Factory Rent Heat and light General Repairs Machine Depreciation Machine insurance Business Rates 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 Floor space occupied (m2) 400 Value of machinery (£'000) 300 Service carried out by: Canteen Machining Assembly Finishing Canteen 200 150 50 Maintenance The service departments work for the other departments as follows: 200 400 30% 25% 200 30% 50% Machining Assembly Finishing Canteen Maintenance 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

Question 2 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 Factory Rent Heat and light General Repairs Machine Depreciation Machine insurance Business Rates 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 Floor space occupied (m2) 400 Value of machinery (£'000) 300 Service carried out by: Canteen Machining Assembly Finishing Canteen 200 150 50 Maintenance The service departments work for the other departments as follows: 200 400 30% 25% 200 30% 50% Machining Assembly Finishing Canteen Maintenance 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

Related questions

Q: ABCO Mortgage Company has the following two service and production departments related to its…

A: Overhead is the total amount of indirect costs which are incurred by the company. These are the…

Q: It is estimated that 20% of the fixed overhead costs assigned to TE456 will no longer be incurred,…

A: Avoidable cost are the cost that can be avoided if the activity is not performed. Mostly fixed costs…

Q: Coronado Corporation accumulates the following data relative to jobs started and finished during the…

A: A management accounting technique called variance analysis is used to assess and evaluate the…

Q: Sheffield Accountant CPAS, LLC is a service firm and applies overhead based upon direct labor cost.…

A: If the actual overhead is more than the overhead applied, then the overhead is underapplied.…

Q: a. Manufacturing account for the year ending 31 December, 2019. b. Statement of profit or loss for…

Q: Smith Accounting pays Lee Young $99,000 per year. Assume that Smith's accountants are expected to…

A: Lets understand the basics.Predetermine overhead gets calculated in order to allocate overhead to…

Q: QUESTION 23 ABCO Mortgage Company has the following two service and production departments…

A: Overhead can be allocated on the basis of a predetermined overhead rate and also by using activity…

Q: Maram Ahmed Al. Items Cost Items Cost Raw materials, 1/1/2019 OMR 30,000 Insurance, factory OMR…

A: The current assets include the Assets that can be converted into cash with in one year.

Q: A EXAMPLE 20.18 The following information relating to the third and last quarter of 2019-20 is…

A: The phrase "production budget" is used explicitly in the film industry as well as more generally in…

Q: Question 4 Set 1

A: Cost of a product refers to the expenses incurred by the company in exchange of getting resources…

Q: Prepare journal entries to record the preceding transactions.

A: Journal entry: It is a systematic record of a financial transaction of an organization recorded in…

Q: Question 3 (20 marks) Andrew Company Limited has overhead cost in general support departments and it…

A: The objective of the question is to allocate the overhead costs of general maintenance and general…

Q: QUESTION: 29 Dart Inc. began operations on January 1, 2019. Dart sells a single product for $10 per…

A: Step 1Step 2Step 3 :Step 4

Q: Manufacturing Overhead Distribution Worksheet The following are selected operating data for 2 the…

A: Distribution overheads are all the expenses incurred from the time the product is finished in the…

Q: Eagle Tiles is a small distributor of marble tiles. Eagle identifies its three major activities and…

A: Operating income is the income available after paying for the cost of goods sold and operating cost…

Q: The T-account showing the manufacturing overhead activity for Davis Corp. for 2024 is as follows: K…

A: Actual manufacturing overhead is the amount of indirect manufacturing cost incurred in the…

Q: Exercise 14-07 National Express reports the following costs and expenses in June 2020 for its…

A: Delivery Service (product) Costs:Which means the expenses directly involved in the production of…

Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction and understanding the question

VIEW

Step 2: Preparation of primary overhead distribution summary

VIEW

Step 3: statement of re-apportionment of the service department's overhead

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Current liabilities, Provisions and Contingencies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Q : 1 Calculate the labour “cost to company” of JP Mthembu for the week ended 13 July 2019.Q : 2 Suppose the expected labour cost of all the employees for the week was R150 000. It is possible that it may be reduced to R130 000 if overtime is avoided but due to productivity issues the cost could increase to R160 000.Calculate the expected labour cost using three-point cost estimating. INFORMATIONJP Mthembu is employed by Solar Manufacturers in Project P. The following are his wage details for the week ended 13 July 2019:Hours worked : Sunday - 4hoursMonday to Thursday - 8 hours:Friday - 9 hours:Saturday - 5 hoursPension fund: employee’s deduction - 7.5 of normal hoursPension fund: employer’s contribution - 9% of normal wagesUnemployment insurance fund: employee’s deduction - 1% of gross wageUnemployment insurance fund: employer’s contribution - 1% of gross wageRemuneration during normal working hours - R150 per hourNormal working week (Monday to Friday) - 8 hours per…
Cost & Management Accounting AC336 Question 3 (13 Marks) Krypton Inc. manufactures two products, Vintex and Bromal. The company estimated it would incur $160,690 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labour hours. Data concerning the current period's operations appear below: Estimated Volume Direct labour hours per unit Direct labour cost per unit Direct material cost per unit Activity cost pool Material acquisition costs Machine costs General factory costs Required: Activity cost pool Material acquisition costs Machine costs General factory costs Vintex 4,700 units 2.1 hours Estimated overhead costs $33.60 $4.80 The company is considering using an activity-based costing system to compute unit product costs instead of its traditional single plant-wide system based on direct labour hours. The activity- based costing system would use three activity cost pools and drivers: Driver Purchase orders…
Question 2 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 Factory Rent Heat and light General Repairs Machine Depreciation Machine insurance Business Rates 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 Machining Assembly Finishing Canteen 150 50 Floor space occupied (m2) 400 Value of machinery (£'000) 300 Service carried out by: Canteen Maintenance 200 400 The service departments work for the other departments as follows: 30% 25% 200 200 30% 50% Machining Assembly Finishing Canteen Maintenance 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.
Q.4. The following data were taken from the records of Al Nada Manufacturing Company for the year ended December 2020. (Amounts are given in OMR) 15,000 4,600 27,600 8,650 554,000 4,200 96,400 1,400 29,000 159,250 25,460 9,600 Factory Depreciation Factory Insurance Factory Utilities Office Utilities Net Sales Salesman's Salary Raw Materials Used Office Repairs Office Manager's Salary Direct Labor Indirect Labor Office Property Taxes Work in process inventory was OMR 18,900 at January 1 and OMR 18,600 at December 31. Finished goods inventory was OMR 95,900 on January 1 and OMR 96,000 on December 31. Instructions: (i) Compute the cost of goods sold. (ii) What is the difference between a merchandiser's balance sheet and a manufacturer's balance sheet.
A1
Answers only
Question 3 Ashale Botwe Ltd has the following cost and expense data for the year ending December 31, 2022. Direct materials (GHC) Work in process (GH¢) Finished goods (GH¢) Insurance factory Property taxes on factory building Materials purchases Sales Indirect materials Delivery expenses Sales commissions Indirect labour 1/1/22 Factory machinery rent Factory utilities Direct labour 30,000 80,000 110,000 Other items of revenue and cost during the year are as follows: (GHC) 31/12/22 20,000 50,000 120,000 Direct materials used b) Total manufacturing cost c) Statement of cost of goods manufactured d) Prime cost e) Conversion cost f) Cost of goods available for sale g) Cost of goods sold h) Gross profit i) Period cost j) Net income 14,000 6,000 205,000 1,500,000 15,000 100,000 150,000 90,000 40,000 ARI 65,000 350,000 24,000 35,000 300,000 Depreciation, factory building Factory manager's salary Administrative expenses For the year 2022, you are required to compute the following: