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32 20 52
3) Determine the estimated total varialbe cost per unit. Direct Material $ 32 Direct Labour $ 20 Variable Factory overhead $ 15 Variable marketing $ 3 Total Variable Cost $ 70 4) Compute the total cost that would be incurred during a month with a production level of a) 12000 Units Cost Item Estimated Unit Cost Total Cost Direct Material $ 32 384000 Direct Labour $ 20 240000 Variable Factory overhead $ 15 180000 Fixed factory Over head $ 6 72000 Total Cost $ 73 876000 b) Sale Level of 8000 Units Estimated Unit Cost $ 32 $ 20 $ 15 $ 6 $ 3 $ 4 $ 80 Total Cost 256000 160000 120000 48000 24000 32000 640000
Cost Item Direct Material Direct Labour Variable Factory overhead Fixed factory Over head Variable marketing Fixed marketing Total Cost
Exercise 2.2
The Mercaldo Company Income Statement For the Period ended on 31st December, 19B Sales 1995000 X85%= Less Cost of Sales Variable Cost 11571000 X 85%= 9835350 Fixed Cost = 7623000 Total Cost of Sales Loss for the Year
16957500
17458350 (500850)
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3204000 Work in Process 129800 2412000 F.Goods 3204000 1885600 Closing 7631400
3204000
5 Opening WIP
1 2 3
(2412000+3204000+1885600)
OR
The Crocket Company Cost of Goods Sold Statement For the Period ended on 31st, December 19B. Description Amount $ Direct Material Opening Inventory of Raw Material Add Purchases Add Transportation In Total Cost of Purchases Cost of Material Available for use Less: Closing Inventory of Raw Material Direct Material Used Direct Labour Cost Factory over head Cost 1: Total Manufacturing Cost Add Opening Work in Process Inventory Cost of goods to be manufactured Less: Closing Work in process Inventory 2: Cost of Goods manufactured Add Opening Finished Goods Inventory Cost of goods available for sale Less: Closing Finished Goods Inventory 3: Cost of Goods Sold
$ 176000
2400000 32000 2432000 2608000 196000 2412000 3204000 1885600 7501600 129800 7631400 136800 7494600 620000 8114600 567400 7547200
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22932 22932
60000 60000
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5. Journal entries for the cost accountng Cycle. MultiElectro Incorporated Date a Description Material Control Voucher Payable Direct Material Purchased Payroll Control Income Tax Withheld FICA Tax Accrued Payroll Payroll Recorded and deductions made Accrued Payroll Voucher Payable Voucher of Payroll made Work in process Control FOH Control Sales Salaries Admin Salaries Payroll Distribution of payroll is made Material Control Voucher Payable Indirect Material & Supplies Purchased FOH Control Sales Expenses Contorl Admn Expenses Control SUI Contribution FUI Contribution FICA Contribution Employers Contribution recorded Work in process Control FOH Control Sales Expense Control Material Control Direct and Indirect Material Issued Voucher Payable Material Control Deffective Shipping Supplies returned to vendors Vouchers Payable Bank Accounts Payable including Salaries paid P.R Amount Debit($) Credit($) 120000 120000
b-2
67500 67500
b-3
26250 26250
900 900
142500 142500
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6900 6900
38056 38056
126000 126000
l-1
Cost of Goods Sold Finished goods Cost of Goods Sold recorded Accounts Receivables Sales Finished Goods Shipped to Customers
96000 96000
l-2
150000 150000
Exercise 2.6
6. Journal entries for the cost accountng Cycle. Romer Company for month of February Date a Description Work in Process Control FOH Control Material Control Direct & Indirect Material issued Finished Goods Work in Process Control Work in Process Completed and transferred to Finished goods Material Control Voucher Payable Material Purchased and received Payroll Control FICA Tax Federal Income Tax State Income Tax Accrued Payroll Payroll Recorded and deductions made Accrued Payroll Voucher Payable Voucher of Payroll made P.R Amount Debit($) Credit($) 18500 2800 21300
51800 51800
32000 32000
d-2
50000 50000
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28100.5 28100.5
65800 65800
i-2
92120 92120
76000 76000
Exercise 2.7
7. Cost of Goods Manufactured Statement. TheThornton Company Cost of Goods Manufactured Statement For the Period ended on ----Description Amount $ $ Direct Material Opening Inventory of Raw Material Add Purchases Cost of Material Available for use Less: Closing Inventory of Raw Material Direct Material Used Direct Labour Cost Factory over head Cost 1 Total Manufacturing Cost Add Opening Work in Process Inventory 16200 20000 36200 17000 19200 16500 8580 44280 3600
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Exercise 2.8
8. Cost of Goods Sold Statement. Pensacola Corporation Cost of Goods Sold Statement For the Period ended on 31st, December Description $ Direct Material Opening Inventory of Raw Material Add Purchases Add Freight on Material Total Cost of Purchases Cost of Material Available for use Less: Closing Inventory of Raw Material Direct Material Used Direct Labour Cost Factory over head Cost Other FOH Depreciation 1 Total Manufacturing Cost Add Opening Work in Process Inventory Cost of goods to be manufactured Less: Closing Work in process Inventory 2 Cost of Goods manufactured Add Opening Finished Goods Inventory Cost of goods available for sale Less: Closing Finished Goods Inventory 3 Cost of Goods Sold Amount $ 88000 366000 6600 372600 460600 64000 396600 523600 468400 104400
572800 1493000 29800 1522800 38800 1484000 54200 1538200 66000 1472200
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Amount $
2.2
Company A Description $ Sales Cost of Goods Sold Cost of Goods manufactured Add Opening Finished Goods Inventory Cost of goods available for sale Less Closing Finished Goods Inventory Cost of Goods Sold Gross Profit Amount $ 4,000,000
Company B Description $ Cost of goods available for sale Less Closing Finished Goods Inventory Cost of Goods Sold $ 1,490,000 190,000 1,300,000 Amount $
Company C
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2.3 Cost accounting Cycle in T Accounts Crockett Company Payroll Controll 180000 WIP 180000 (2)
1 Opening Purchases
Material Control 20000 65000 85000 WIP Closing 70000 15000 85000 (1)
180000 4 Work in Process Control 7000 70000 F.Goods 180000 100000 Closing 357000
180000
FOH Control 20000 WIP 55000 10000 2000 13000 100000 Finished Goods 34000 346000 CGS Closing 380000
100000
(3)
(4)
100000 6 350000 30000 380000 (5) F. Goods Cost of Goods Sold 350000
5 Opening WIP
Sales Receivables
500000
V/P c/b
10
Cash c/b
(7)
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2.4 Journal Entries for the cost accounting cycle. Waterlux Company
1 Opening Purchases
Material Control 17000 91000 108000 WIP Closing 84000 24000 108000
50000 4 opening Material Labour FOH Work in Process Control 12000 84000 F.Goods 50000 25000 Closing 171000
50000
35000 5 Opening WIP Finished Goods 28000 157000 CGS Closing 185000
Journal Entries Date a Description Description Material Control Voucher Payable Direct Material Purchased Work in process Control Material Control Direct Material Charged to Production Work in process Control Payroll Control Direct Labour Charged to Production Accrued Payroll P.R Debit($) Amount Credit($)
91000 91000
84000 84000
50000 50000
50000
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157000 157000
145000 145000
92000 120000
c-4
8030
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47330 47330
188000 188000
g-2
241150 241150
212920
53230 266150
188000
6830 194830
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7 Opening
Accrued Payroll O/B 2250 2250 Common Stock O/B 60000 60000
10 2250 Closing
10000 10000
10000 10000
Closing
2250 12 60000 Closing 60000 Retained Earnings O/B 21250 21250 21250
11
21250
Closing
13 b c-3 c-4 d
Factory Over Head Control 18500 e 47330 12500 8030 8300 47330 0 Income Tax with Held c-1
14 c-1
86000
86000
15
16 8170
Closing Closing 8170 8170 FUI Tax c-1 c-4 Closing 1376 1376 688 688 Closing 1376 8170 18
17
19 c-2
20 68370
Sales g 241150
Closing 0 0
241150 241150
241150
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S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Description Cash Account Accounts Receivables Material Control Work in Process Finished Goods Cost of Goods Sold Machinery Accounts Payables Accrued Payroll Accumulated Depreciation Common Stock Retained Earnings Income Tax with Held SUI Tax FUI Tax FICA Contribution Sales Sales Expenses Control Admn Salaries Control Discount Allowed Total
Credit
556110
2.6 Cost of goods sold statement; Income Statement Mandmeyer Company Income Statement For the Period ended on 31st, December 19b Description $ Sales Direct Material Opening Inventory of Raw Material Add Purchases Cost of Material Available for use Less: Closing Inventory of Raw Material Direct Material Used $ Amount $ 56000
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35850 20150
4480 15670
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