The Following Trail Balance has been extracted from the books of ABC Company on December 31st, 2018: Debit Debit Descriptions Descriptions Rs. Rs. Cash 8,200| Notes Payable 41,000 Accounts Payable 23,000 Taxes Payable 31,800 Rent Payable 4,000 Dividend Payable 11,700 200 3,200 12,350 Accounts Receivable Notes Receivable 1,500 1,020 300 Material (1-1-2018) Work in Process (1-1-2018) Finished Goods (1-1--2018) Prepaid Insurance Machinery & Equipment Purchased of Material Carriage inward Sales Common Stock 93,500 Retained Earnings 16,000 Accumulated Depreciation 320 35,000 10,000 34,570 20,000 Direct Labor 33,000 8,520 5,580 Indirect Material Indirect Labor Depreciation - Factory 5,400 6,500 Utility - Factory Carriage outward Advertising Salesmen Salary Foreman Salary 460 175 565 7,000 Administrative Cost 1,020 318,140 318,140 During the year 70,000 units have been produced. The Following Further information are also available: Iaventories at December 31st, 2018 Rs. Material 3,520 2,500 Work in Process Finished Goods 10,000 Note: The factory overhead cost applied at the rate of 10096 of direct labor cost. The actual FOH cost incurred during the period Rs. 31,480. Required a) Statement of Cost of Goods Manufactured at December 31st, 2018. b) Statement of Profit or Loss for the year ended December 31st, 2018.
The Following Trail Balance has been extracted from the books of ABC Company on December 31st, 2018: Debit Debit Descriptions Descriptions Rs. Rs. Cash 8,200| Notes Payable 41,000 Accounts Payable 23,000 Taxes Payable 31,800 Rent Payable 4,000 Dividend Payable 11,700 200 3,200 12,350 Accounts Receivable Notes Receivable 1,500 1,020 300 Material (1-1-2018) Work in Process (1-1-2018) Finished Goods (1-1--2018) Prepaid Insurance Machinery & Equipment Purchased of Material Carriage inward Sales Common Stock 93,500 Retained Earnings 16,000 Accumulated Depreciation 320 35,000 10,000 34,570 20,000 Direct Labor 33,000 8,520 5,580 Indirect Material Indirect Labor Depreciation - Factory 5,400 6,500 Utility - Factory Carriage outward Advertising Salesmen Salary Foreman Salary 460 175 565 7,000 Administrative Cost 1,020 318,140 318,140 During the year 70,000 units have been produced. The Following Further information are also available: Iaventories at December 31st, 2018 Rs. Material 3,520 2,500 Work in Process Finished Goods 10,000 Note: The factory overhead cost applied at the rate of 10096 of direct labor cost. The actual FOH cost incurred during the period Rs. 31,480. Required a) Statement of Cost of Goods Manufactured at December 31st, 2018. b) Statement of Profit or Loss for the year ended December 31st, 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q#1
The Following Trail Balance has been extracted from the books of ABC Company on December 31st,
2018:
Debit
Debit
Descriptions
Descriptions
Rs.
Rs.
Cash
Notes Payable
8,200
41,000 Accounts Payable
23,000 Taxes Payable
31,800 Rent Payable
4,000
3,200
12,350
Accounts Receivable
1,500
1,020
Notes Receivable
Material (1-1-2018)
Work in Process (1-1-2018)
Dividend Payable
500
Finished Goods (1-1--2018)
11,700
Sales
35,000
10,000
Prepaid Insurance
200
Common Stock
93,500 Retained Eamings
Accumulated Depreciation
Machinery & Equipment
34,570
Purchased of Material
16,000
20,000
Carriage inward
520
Direct Labor
33,000
Indirect Material
8,520
5,580
Indirect Labor
Depreciation - Factory
5,400
Utility - Factory
Carriage outward
Advertising
Salesmen Salary
6,500
460
175
565
Foreman Salary
7,000
Administrative Cost
1,020
318,140
318,140
During the year 70,000 units have been produced. The Following Further information are also
available:
Inventories at December 31st, 2018
Rs.
Material
3,520
2,500
Work in Process
Finished Goods
10,000
Note: The factory overhead cost applied at the rate of 100% of direct labor cost.
The actual FOH cost incurred during the period Rs. 31,48o.
Required
a) Statement of Cost of Goods Manufactured at December 31st, 2018.
b) Statement of Profit or Loss for the year ended December 31st, 2018.
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