A EXAMPLE 20.18 The following information relating to the third and last quarter of 2019-20 is furnished by a compan which manufactures and sells a single product: Third Quarter Last Quarter (Actual) 76,24,000 (Estimate) 76,60,000 Sales Inventory of raw material and finished goods: Орening Balance Closing Balance Closing Balance Raw material A (kg) Raw materialB (kg) Finished goods (units) 25,000 23,500 25,000 15,000 12,650 13,400 670 700 1,000 Unit cost data: Raw material A: 10 kg @ 33 = 730 5 kg @ 2 = 10 %3D Raw material B: %3D Direct labour (Machine time 5 hrs @ 4): Machine shop = 20 Assembly 2 hrs. @ 75 (labour time) = 710 Production overheads: %3D Machine shop @ 12 per machine hr. Assembly @10 per labour hr. Selling and Administration O.H. : 20% of production cost Profit margin : 10% on selling price Production and sales occur evenly during the budget period. You are required to prepare for the las quarter of the year. (a) Production budget (in units) (b) Purchase budget (quantity and value) (c) Production cost budget.

A EXAMPLE 20.18 The following information relating to the third and last quarter of 2019-20 is furnished by a compan which manufactures and sells a single product: Third Quarter Last Quarter (Actual) 76,24,000 (Estimate) 76,60,000 Sales Inventory of raw material and finished goods: Орening Balance Closing Balance Closing Balance Raw material A (kg) Raw materialB (kg) Finished goods (units) 25,000 23,500 25,000 15,000 12,650 13,400 670 700 1,000 Unit cost data: Raw material A: 10 kg @ 33 = 730 5 kg @ 2 = 10 %3D Raw material B: %3D Direct labour (Machine time 5 hrs @ 4): Machine shop = 20 Assembly 2 hrs. @ 75 (labour time) = 710 Production overheads: %3D Machine shop @ 12 per machine hr. Assembly @10 per labour hr. Selling and Administration O.H. : 20% of production cost Profit margin : 10% on selling price Production and sales occur evenly during the budget period. You are required to prepare for the las quarter of the year. (a) Production budget (in units) (b) Purchase budget (quantity and value) (c) Production cost budget.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information is taking from Wei Min Enterprise for the year ended 31December 2020: Particulars RM Inventory at 1 January 2020:Raw materialsWork in progressFinished goods 25,40031,10023,260Purchases : raw materials 91,535Carriage on raw materials 1,960Direct labour 84,208Office salaries 33,419Rent 5,200Office lighting and heating 4,420Depreciation:Works machineryOffice equipment 10,2002,300Sales 318,622Factory fuel and power 8,120 Prepared by: Puan Siti Nor Junita Mohd Radzi Additional information:i. Rent is to be apportioned: factory 3⁄4; office 1⁄4ii. Inventory at 31 December 2020 was:a. Raw materials RM28,900b. Work in progress RM24,600c. Finished goods RM28,840Required: b) Prepare statement of comprehensive income for the year ended 31 December 2020.
5. The following are data of materials inventory for the year 2020 of Mars Corp: Number of pounds required annually Cost of placing an order Annual carrying cost per pound of 144,000 P180 materials P36 What is the EOQ?
The following extract of costing information relates to a commodity A for the halfyear ending 31:12.2020PARTICULARSPurchase of raw. materialsWorks OvetheadsDirect WagesCarriage on purchasesStock (1.7.2018) Raw MäterialsFinished Products (1000 Tonnes)Stock (31.12.2018) Raw MaterialsWork in progress (WIP)1.7.201831.12.2018Sales of finished productsAMOUNT (R$)• 1.20.00048.0001.00.0001,44020,00016.00022.2404.80016,0003.00.000Selling and distribution overheads are Re.1 per ton sold. 16,000 tonnes of commodity wereproduced during the period. Prepare a cost sheet.
PROBLEM 14: MMM Company started operations in 2019. The following data are abstracted from the company's production and sales records: 2019 2020 2021 of units Number produced Number of units sold Unit production cost 116,250 108,750 P 4.50 P 5.20 P 5.80 900,000 120,000 75,000 101,250 97,500 Sales revenue 600,000 975,000 19. Using the FIFO cost flow assumption, the gross profit for the year ended December 31, 2021 is: PROBLEM 15: The following quarterly cost data have been accumulated for New DDD Manufacturing, Inc.: Raw materials, 1/1/2022 Purchases of raw materials 10,000 units at P6.00 8,500 units at P7.00 11,000 units at P7.50 Raw materials transferred to work in process Work in process, 1/1/2022 Direct labor Manufacturing overhead Work in process, 3/31/2022 21,500 units 5,600 units at P13.50 P 250,000 325,000 4,200 units at P13.75 20. If New Dehi uses the FIFO method for valuing raw materials inventories, compute for the cost of goods manufactured for the quarter ended March 31,…
Compute for the Economic order quantity, assuming the no of units of materials required annually 20,000 cost of placing the order P29.00, Annual Carrying cost of inventory P 5.4
14. You are given the following details of the company L. for the financial year 1.1.2020-31.12.2020 Beginning inventory of direct materials 120000Purchases of direct materials 228000Direct labor cost 610000direct cost (Initial cost) 780000 The cost of the ending inventory on 31.12.2020 of direct materials is:a. 178000b. 170000c. 150000d.348000
Compute for the Economic order quantity, assuming the no of units of materials required annually 120,000 cost of placing the order P 39.00, Annual Carrying cost of inventory P 2.4
Information concerning sales and production for ABC Co. for November 2019 are summarized asfollows:A. Estimated Sales:Product X: 80,000 units at $60, per unitProduct Y: 40,000 units at $130 per unitB. Estimated inventories, November 1, 2019Material A: 8,000 lbs Product X: 6,000 units at $34 per unit $204,000Material B: 7,000 lbs Product Y: 5,400 units at $70 per unit 378,000Total $582,000C. Desired inventories at November 30,2019Material A: 6,000 lbs Product X: 5,000 units at $34 per unit $170,000Material B: 5,000 lbs Product Y: 4,000 units at $70 per unit 280,000Total $450,000D. Direct materials used in productionProduct X Product YMaterial A 1.4 lbs per unit 7.0 lbs per unitMaterial B 2.4 lbs per unit 3.6 lbs per unitE. Unit costs for direct materialsMaterial A: $ 8.0 per lbMaterial B: $ 4.0 per lbF. Direct labor requirementsDepartment 1 Department 2Product X 0.8 hr per unit 0.30 hr per unitProduct Y 1.2 hr per unit 0.50 hr per unitWhat to do:1. Prepare a sales budget for November2.…
Hw.52. The manufacturing concern has the following data available for the month of March 2020:Total manufacturing cost Rs. 10,000Total cost of goods manufactured Rs.15,500Cost of material purchased Rs.3,500Direct Labour Rs.2,100Direct material_ Begining Rs.3,100Direct material Ending Rs.600The amount of FOH must be RS. O a. 1,900 O b. 2,000 O C. 2,900 • d. 2,100
Bubba Manufacturing Company provided the following information for the fiscal year toJune 30, 2020:Inventories 01/07/2019 30/06/2020Direct MaterialsWork-in-ProcessFinished Goods$72,000107,000149,500$65,000128,000141,700Other information:Office cleaner’s wages 4,500Sales Revenue 1,031,000Raw materials purchased 235,000Factory wages 239,700Indirect materials 23,500Delivery truck driver’s wages 15,400Indirect labor 9,500Depreciation on factory plant & equipment 32,000Insurance 1 60,000Depreciation on delivery truck 7,250Utilities 2 118,750Administrative salaries 41,250Special Design Costs 5,000Selling expenses 9,000Sales Commission 2% of gross profit1 Of the total insurance, 66⅔% relates to the factory facilities & 33⅓% relates to general& administrative costs.2 Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to theoffice area.Requirements:a) What was the amount of direct materials used in production?b) What was the amount of manufacturing…
3. The following information is taking from Wei Min Enterprise for the year ended 31 December 2020: Particulars RM Inventory at 1 January 2020: Raw materials Work in progress Finished goods Purchases : raw materials Carriage on raw materials Direct labour 25,400 31,100 23,260 91,535 1,960 84,208 33,419 5,200 4,420 Office salaries Rent | Office lighting and heating Depreciation: Works machinery Office equipment Sales Factory fuel and power 10,200 2,300 318,622 8,120
Time let XYZ Co. has the following information: Inventory at 1st Inventory at 31st Dec 2020 Jan 2020 Raw Materials Inventory OMR 20,000 OMR 30,000 Work in Process Inventory OMR 18,000 OMR 15,000 Finished Goods Inventory OMR 30,000 OMR 20,000 Additional information for the year is as follows: Raw materials purchases OMR 100,000 OMR 75,000 Direct labor OMR 85,000 Manufacturing overhead applied Manufacturing overhead Actual Indirect materials OMR 80,000 OMR ACCT2121 Ggeneral-chat. gin