Question 2 The following data relate to Quality Manufacturing Ltd for the year ended 30 June 20X3. $ Administrative costs 150,000 Advertising expense 99,000 Direct labour wages 580,000 Direct material purchased 2,100,000 Actual factory overhead 994,000 Other selling expenses Sales commissions 515,000 25.000 Raw materials inventory, 30 June 20X3 135,600 Raw materials inventory, 1 July 20X2 190,400 Work in process, 30 June 20X3 242,600 Work in process, 1 July 20X2 Finished goods, 30 June 20X3 Finished goods, 1 July 20X2 Sales 218,800 105,800 73,600 4,516,120 The company uses normal costing and factory overhead is applied at the rate of 178% of direct labour cost. Question 2a Calculate each of the following costs for the year: (i) Direct material used. (ii) Total prime costs. (iii) Total conversion costs. (iv) Cost of goods manufactured. (v) Total period costs. (vi) Cost of goods sold. (vii) Net profit/(loss) Question 2b Calculate the factory overhead variance. Question 2c ACC202 Copyri ngapore University of Social Sciences (SUSS) Proctored Online Exam-. ry Semester 2024 10 William Fong is the Sales Manager of Quality Manufacturing Ltd. If he has the authority to control all costs related to the marketing and sales function, compute his controllable costs. Question 2d Explain the term "normal costing" and state why it is commonly used.
Question 2 The following data relate to Quality Manufacturing Ltd for the year ended 30 June 20X3. $ Administrative costs 150,000 Advertising expense 99,000 Direct labour wages 580,000 Direct material purchased 2,100,000 Actual factory overhead 994,000 Other selling expenses Sales commissions 515,000 25.000 Raw materials inventory, 30 June 20X3 135,600 Raw materials inventory, 1 July 20X2 190,400 Work in process, 30 June 20X3 242,600 Work in process, 1 July 20X2 Finished goods, 30 June 20X3 Finished goods, 1 July 20X2 Sales 218,800 105,800 73,600 4,516,120 The company uses normal costing and factory overhead is applied at the rate of 178% of direct labour cost. Question 2a Calculate each of the following costs for the year: (i) Direct material used. (ii) Total prime costs. (iii) Total conversion costs. (iv) Cost of goods manufactured. (v) Total period costs. (vi) Cost of goods sold. (vii) Net profit/(loss) Question 2b Calculate the factory overhead variance. Question 2c ACC202 Copyri ngapore University of Social Sciences (SUSS) Proctored Online Exam-. ry Semester 2024 10 William Fong is the Sales Manager of Quality Manufacturing Ltd. If he has the authority to control all costs related to the marketing and sales function, compute his controllable costs. Question 2d Explain the term "normal costing" and state why it is commonly used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Help Answer Question 2A - 2D (Indicate each solution with 2A - 2D)
Transcribed Image Text:Question 2
The following data relate to Quality Manufacturing Ltd for the year ended 30 June
20X3.
$
Administrative costs
150,000
Advertising expense
99,000
Direct labour wages
580,000
Direct material purchased
2,100,000
Actual factory overhead
994,000
Other selling expenses
Sales commissions
515,000
25.000
Raw materials inventory, 30 June 20X3
135,600
Raw materials inventory, 1 July 20X2
190,400
Work in process, 30 June 20X3
242,600
Work in process, 1 July 20X2
Finished goods, 30 June 20X3
Finished goods, 1 July 20X2
Sales
218,800
105,800
73,600
4,516,120
The company uses normal costing and factory overhead is applied at the rate of 178%
of direct labour cost.
Question 2a
Calculate each of the following costs for the year:
(i) Direct material used.
(ii) Total prime costs.
(iii) Total conversion costs.
(iv) Cost of goods manufactured.
(v) Total period costs.
(vi) Cost of goods sold.
(vii) Net profit/(loss)
Transcribed Image Text:Question 2b
Calculate the factory overhead variance.
Question 2c
ACC202 Copyri
ngapore University of Social Sciences (SUSS)
Proctored Online Exam-.
ry Semester 2024
10
William Fong is the Sales Manager of Quality Manufacturing Ltd. If he has the
authority to control all costs related to the marketing and sales function, compute his
controllable costs.
Question 2d
Explain the term "normal costing" and state why it is commonly used.
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