Labour Overhead Total In process 323 6750 3000 3600 13350 324 1700 500 600 2800

Labour overhead total in process 323 6750 3000 3600

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Labour OverheadTotalIn process323$ 6,750$ 3,000$ 3,600$ 13,3503241,7005006002,800Completed3226,3504,8755,85017,075FNSACC517 Provide management accounting information Assessment Guide v1.0 Copyright © Mentor Education Pty Ltd RTO 21683 21
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During the month of June, the following transactions occurred: $$Materials purchased on credit24,700Factory wages paid - Gross29,000- PAYG Tax6,70022,300Factory rent paid2,500 Invoices for sundry factory overhead items2,000Depreciation at 15% per annum is to be charged on factory plant valued at $160,000.Material issued to the factory and labour charged for the month were:Job No.MaterialLabour323$ nil$ 1,1753245,6004,40032512,0009,2503264,5001,000Indirect3,0009,80025,10025,625Factory overhead is applied using a rate of 120% of direct labour cost. Any over/under-appliedoverhead is transferred to cost of goods sold at June 30. At 30 June, Job No. 326 was incomplete.Job Nos 322, 323 and 324 had been completed and sold on credit, while Job No. 325 was still inthe finished goods warehouse. The jobs sold had a total sales value of $81,744.Task 1Prepare and balance the following accounts (a single ledger is used): a.Raw Materials Controlb.Labour Controlc.Factory Overhead Controld.Factory Overhead Appliede.Work in Processf.Finished GoodsFNSACC517 Provide management accounting information Assessment Guide v1.0 Copyright © Mentor Education Pty Ltd RTO 21683 22
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Case study 2 Zubi Pty Ltd prepared a summary showing the following expected costs for a production level of50,000 units:Direct labour$ 80,000Fixed manufacturing overhead60,000Fixed selling and administration110,000Variable manufacturing overhead30,000Variable manufacturing250,000Variable selling70,000Zubi Pty Ltd accounts for all manufacturing costs as inventoriable (product) costs.Task 2Calculate the following TOTAL costs:a.Conversion costb.Product costc.Prime costd.Period coste.Expected manufacturing overhead cost for a production level of 60,000 units.Case study 3The following information has been prepared from the accounting records of Double Ltd for the six-months to 30 June 2018. The business uses a periodic inventory system.Accounts receivable$Balance 01/01/2018178,300Sales1,846,500Inventories 01/01/2018Raw Materials95,940Factory Supplies8,440Finished Goods174,690Work in Process28,650Factory insurances:Prepaid 01/01/20182,920Annual Premium paid 01/04/201812,360Factory Plant & Equipment:At cost 01/01/2018343,800Accumulated Depreciation 01/01/2018154,710Depreciation - Straight-line @ 10% p.a.?Accounts payable:FNSACC517 Provide management accounting information Assessment Guide v1.0 Copyright © Mentor Education Pty Ltd RTO 21683 23
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