Selected data for Babar Ltd of past year of operations are presented below Product X 25000 Production [ in units ] Sales [ in units] Selling price DLHours 18000 $4.00 800 Manufacturing cost Raw Materials [S] Salaries of direct labour[$] 17000 24000 Actual machine hours worked 8000 $30.00 Hourly rate for DLH Non manufacturing cost Variable selling Fixed selling cost 18000 15000 Estimated fixed cost $28000 Budgeted Machine hours 8400 Company uses absorption cost based on machine hours. For calculating product cost using variable costing, assume 40 % of the overhead applied to be variable overhead [VOHJand the rest to be fixed overhead [FOH] %3D REQUIRED 1. Calculate product cost of product X using variable cost. 2. Calculate product cost of product X using absorption cost .. 3. Calculate variable cost of goods for the year
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
![Selected data for Babar Ltd of past year of operations are
presented below
Product X
25000
Production [ in units ]
Sales [ in units]
Selling price
DLHours
18000
$4.00
800
Manufacturing cost
Raw Materials [S]
Salaries of direct labour[$]
Actual machine hours worked
17000
24000
8000
Hourly rate for DLH
Non manufacturing cost
Variable selling
Fixed selling cost
$30.00
18000
15000
Estimated fixed cost $28000
Budgeted Machine hours 8400
Company uses absorption cost based on machine hours.
For calculating product cost using variable costing, assume 40 %
of the overhead applied to be variable overhead [VOH]and the rest
to be fixed overhead [FOH]
%3D
REQUIRED
1. Calculate product cost of product X using variable cost.
2. Calculate product cost of product X using absorption cost ..
3. Calculate variable cost of goods for the year
4. Find the variable-costing net income
5. Calculate cost of goods for the year using absorption method
6. Find the net income using absorption method](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c958825-7d31-4e66-b065-fcbb504f10c7%2F07681b72-16bc-4032-9f3b-3c2366070d14%2Fnx4ffdh_processed.jpeg&w=3840&q=75)
Step by step
Solved in 4 steps
