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# Batch 6 - PowerPoint PPT Presentation

Batch 6. Assessment. The following costs have been accrued for ABC Company for the month. Direct labor \$210000 Indirect labor 85000 Supervision 32000 Sales commission 40000 Sale Salaries 18000. Classify the following 1. period costs 2. product costs 3. fixed costs

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## PowerPoint Slideshow about 'Batch 6' - erasto

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### Batch 6

Assessment

• Solution the month.

• 1. Period costs= marketing costs+ admin costs.

• Ie

• Sales commission + Sales salaries

• = 40000+18000= 58000

• Question 2 the month.

• The following information is from the books of a company at the end of the period.

• Direct labor 140000

• Sales commission 30000

• Property tax on factory building 50000

• Factory depreciation 60000 the month.

• Direct materials used 130000

• Required

• 2. prime cost

• 3. Manufacturing cost for the period

• 4. Conversion cost

• Solution the month.

• 1. Fixed manf. Cost = property tax+ depreciation

• = 50000+60000= 110000

• 2. Prime cost= DM+ DL

• 130000+140000= 270000

• 3. M. cost= DL+DM+ PT+VOH+Dep

• = 140000+130000+50000+70000+60000=450000

4. Conversion cost= OH+ DL the month.

= PT+VOH+Dep+DL

50000+70000+60000+140000=320000

5. VM cost= DM+DL+VOH

130000+140000+ 70000= 340000

6. Total V.C= DM+DL+VOH+Sales commission

= 130000+140000+ 70000+30000= 370000

• Question 3 the month.

• The following are from the books of a company at the end of April ( all figures are in thousands).

• 1 April 30. April

• Cash 56 42

• Accounts reci. 200 220

• WIP 120 116

• Materials 41 47

• F.Goods ( all figures are in thousands). 135 100

• Acc. Payable 15 18

• Raw.Mat.Purcahse - 80

• Direct Lab.Payable 30 35

• D.labor - 140

• In.production cost - 93

• Selling Expense - 85

• Sales - 510

• Required ( all figures are in thousands).

• 1. Prepare the CGS statement

• 2. Prepare the income

• 3. How much is paid to suppliers?

• 4.How much is paid to direct labor?

• 5. How much is collected form customers?

1. CGS ( all figures are in thousands).

• Direct Material 1.4 41

• +Purchases 56

• Direct material available 97

• -Direct material 30.4 47

• D. Material used 50

• +D. Labor 140

• D.cost of Man 190

• +OH 93

• Man.cost for the period 283

• +WIP 1.4 120 ( all figures are in thousands).

• -WIP 30.4 116

• Cost of completed goods 287

• +FGI 1.4 105

• Cost of goods available for sale 392

• -FGI30.4 110

• CGS 282

• 2. Sales 510 ( all figures are in thousands).

• -CGS 282

• Gross margin 228

• -Selling exp. 85

• Profit 53

• 3.Material purchase= 56 ( all figures are in thousands).

• Acc. payable balance increase = 18-15= 3

• Therefore the amount paid is

• 56-3= 53

• 4. DL cost = 140

• DL payable increase = 35-30= 5

• DL paid= 140-5= 135

• Collections ( all figures are in thousands).

• Sales = 510

• Increase in receivables= 220-200= 20

• Collections= 510-20= 490