Closing stocks 1000Salesman Commission Expenses

Closing stocks 1000salesman commission expenses

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Closing stocks 1,000Salesman Commission 18,00010,000Distribution Expenses 13,000Stock Differences:Raw Materials: Closing 1,000Finished Goods: Closing2,000Net Profit as Per the Financial Books: 20,000Dividends Received3,000Salesman Commissions 18,000Interest on Bank Deposits1,000Selling Expenses:15,000Loss on sale of land1,000Distribution Expenses13,000Interest on Mortgage2,000Fines 1,000Net Profit c/d 70,000______175,000175,000T axation 24,000Net Profit b/d70,000Transfers to General Reserve 9,000Retained Earnings b/f36,000Ordinary COST ACCOUNTING
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Cost Accumulation 102 share dividend18,000Preference Dividends11,000Goodwill written off 37,000_______106,000106,000 Retained Profit b/f 37,000 xDrCrStores Ledger Control a/cx W.I.P. control a/cxFinished Goods Control a/cxIn the Costing BooksWages Paid in Cash Dr Wages a/cDr Wages Control a/c Cr Cash a/cCr General Ledger Adjustment a/cWages Incurred as direct labour Not recorded in Financial BooksDr. W.I.P a/cCr. Wages Control Dr. Production Overheads Control a/cIn the Costing BooksPurchases on Credit: Dr Purchases a/cDr Stores Ledger Control a/c Cr Creditors a/cCr General Ledger Adjustment a/cReturn of Materials to Suppliers Dr CreditorsDr. General Ledger Adjustment a/c Cr. Purchases a/c Cr. Stores Ledger Control a/cPurchases of Materials in Cash Dr. Purchases a/cDr. Stores Ledger Control a/c Cr. Cash a/cCr. General Ledger Adjustment a/cCanteenBoiler houseProduction department %%110202301032030Service department 43020Canteen-20Boiler house10- __Total100100ShsProduction department1200,0002500,00 03300,0004400,000Service departmentCanteen50,000Boi ler house100,000Total1,550,000S hsShsPartner44 81,000 8,000Manager44 8 600 4,800Seniors2130 51 S TRATHMORE U NIVERSITY STUDY PACK
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103 Lesson Three 40020,400Assistants4870118 20023,6007710818556,80021 SMTWTFSTotalChargeable hours: Client A885ShsCompensation of professional staff40,000,000Other costs24,000,000Total budgeted costs64,000,000CuttingStitchi ngHours actually workedDirect labour hours68,00030,000Machine hours-17,000Factory overhead cost incurred1,600,000760,000Cut tingStitchingDirect materialsShs.500Shs.750Direc t labour hours3010Machine hours- 20CuttingStitchingDirect labour costShs.1,200,000Shs.750,00 0Factory overheadShs.1,500,000Shs.1, 620,000Direct labour hours60,00030,000Machine hours-40,000 Department ADepartment BShsShsMaterials issued5,000Shs.15,000Direct labour cost4,800Shs.4,000Direct labour hours400500Machine hours1,500100Department ADepartment BShsShsDirect material cost800,000600,000Direct labour cost600,000500,000Factory overheads600,000400,000Dir ect labour hours40,00050,000Machine hours120,0007,500ABi)Units2 0,00010,000ii)Labour hours20,00020,000iii)Labour costShs.17,500Shs.22,500iv) Machine COST ACCOUNTING
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Cost Accumulation 104 hours45,00015,000v)Material costShs.15,000Shs.25,000 S1S2S3P1P2TOTALCost Prior to Allocation 92,000 184,800 138,600400,000500,000Alloc ate S1(1:2:4:3)92,4009,24018,48 036,96027,720194,040157,08 0436,960527,720Allocate S2(2:5:3) (194,040)43,120107,80043,1 20- 200,200544,760570,840Alloc ate S3(1:6) (200,200)28,600171,600S1S2 S3P1P2TOTALCost Prior to Allocation 92,000 184,800 138,600400,000500,000Alloc ate S1(4:3)(92,400)--52,800 39,600Allocate S2 (5:2)- (184,800)-132,000 52,800Allocate S3(1:6)- - (138,600) 19,800118,800- - - 604,600711.2001,315,800Uni t of Service ProvidedCosts Prior to Service DepartmentS1S2S3Shs.S1 0 2,000 4,500 92,400S2 1,000 0 0 184,800S3 2,000 4,000 0 138,600P1 4,00010,000 1,500 400,000P2 3,000 4,000 9,000 500,000Totals10,00020,00015 ,0001,315,800 Possible cost driverOrderingNumber of ordersMaterials handlingNumber of production runsProduction schedulingNumber of S TRATHMORE U NIVERSITY STUDY PACK
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105 Lesson Three production runsDispatchingNumber of dispatchesTotal Overhead absorbed(1375)(250 x 5.50)___ ______Under absorption of overhead125NIL125 950 Note That the total profit over the two periods is the same for each method of
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