Problem 1 Bigglesby Ltd manufactures trailers.The following information has been taken from the...

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Problem 1
Bigglesby Ltd manufactures trailers.
The following information has been taken from the company accounts for the year to 30 June.
    Direct materials used
    $120,000
    Direct Labou
    $30,000
    Conversion Costs
    $80,000
    Selling and Administration Expenses
    $70,000
    Financial Expenses
    $30,000
Please calculate the following
(a) Prime Cost
(b) Factory Overhead Cost
(c) Total Cost of Goods Manufactured
(d) Total Period Costs
































































Problem 2
Complete in journal entry form for each of the following related transactions.
Assume in each case that the general ledger is used.
Opening balance of raw materials was $40,000
Opening balance of work in process was $10,000
Opening balance of finished goods was $50,000
    Purchase of materials on account (exc GST)
    $30,000
    Issue of direct materials to jopbs in process
    $50,000
    Indirect materials issued
    $7,000
    Inspected material found faulty and returned to suppliers
    $2,000
    Direct labour charged to production
    $25,000
    Indirect labou
    $3,000
    Factory labour payroll (including tax withheld $3,000)
    $28,000
    Depreciation 20% pa straight line (Cost $75,000)
    ?
    Factory overhead applied to production at rate of 100% of direct labour cost

    The cost of goods produced transfe
ed to finished goods store in the period
    $100,000
    Sale of all finished goods for cost plus 100%

After completing journal entries, determine the closing balance of Raw Materials, Work in Process, Finished Goods and Factory Overhead Applied account.
EXAMPLE FORMAT                        Dr.        Cr.
    Raw Materials Control XXXXXXXXXX30,000
    GST paid XXXXXXXXXX3,000
     XXXXXXXXXXAccounts Payable XXXXXXXXXX33,000
     XXXXXXXXXXPurchase of materials on account























































































Problem 3
The following information is extracted from the books of Bucknor Manufacturing Pty Ltd for the year ended 30/6/16.
    Purchase of materials
    $91,000
    Direct Wages Paid
    $58,600
    Supervisor Wages Paid
    $17,800
    Depreciation – Factory Plant
    $6,800
    Factory Supplies
    $500
    Factory Rent
    $28,500

    Beginning and end of year balances are:
    1/07/15
    30/06/16
    Inventory Materials
    $20,000
    $24,000
    Work in Process
    $8,600
    $18,000
    Direct Wages Accrued
    $600
    $800
Prepare a Manufacturing Statement, showing each cost element, for the year ended 30 June 2015
    WORKINGS EXAMPLE: Direct Labour = $58,600 - $600 + $800 = $58,800

problem-1-yc0z2r3o.docx

Khushboo · Accepted Answer

Problem 1 
Bigglesby Ltd manufactures trailers.
The following information has been taken from the company accounts for the year to 30 June.
	Direct materials used
	$120,000
	Direct Labour
	$30,000
	Conversion Costs
	$80,000
	Selling and Administration Expenses
	$70,000
	Financial Expenses
	$30,000
Please calculate the following
(a) Prime Cost
(b) Factory Overhead Cost
(c) Total Cost of Goods Manufactured
(d) Total Period Costs
	a) Calculation of prime cost
	Direct material used  = $120,000
	Direct labour              =$30,000
	Prime cost                = $150,000
	
	b) Calculation of factory overhead costs
	Conversion costs             = $80,000
	Factory overhead costs = $80,000
	
	c) Calculation of total cost of goods manufactured
	Prime costs                                       = $150,000
	Conversion costs                              = $80,000
	Total cost of goods manufactured = $230,000
	
	d) Calculation of total period costs
	
	Selling and administration expenses = $70,000
	Financial expenses                            =$30,000
	Total period costs                           = $100,000
	
	
	
	
	
	
	
	
Problem 2
Complete in journal entry form for each of the following related transactions.
Assume in each case that the general ledger is used.
Opening balance of raw materials was $40,000
Opening balance of work in process was $10,000
Opening balance of finished goods was $50,000
	Purchase of materials on account (exc GST)
	$30,000
	Issue of direct materials to jobs in process
	$50,000
	Indirect materials issued
	$7,000
	Inspected material found faulty and returned to suppliers
	$2,000
	Direct labour charged to production
	$25,000
	Indirect labour
	$3,000
	Factory labour payroll (including tax withheld $3,000)
	$28,000
	Depreciation 20% pa straight line (Cost $75,000)
	?
	Factory overhead applied to production at rate of 100% of direct labour cost
	
	The cost of goods produced transferred to finished goods store in the period
	$100,000
	Sale of all finished goods for cost plus 100%
	
After completing journal entries, determine the closing balance of Raw Materials, Work in Process, Finished Goods and Factory Overhead Applied account.
EXAMPLE FORMAT						Dr.		Cr.
	Raw Materials Control                                                         30,000
	GST paid                                                                               3,000
	                              Accounts Payable                                                       33,000     
	             Purchase of materials on account
	
	Work in process control                                                         50,000
	                               Raw material control                                                    50,

Problem 1 Bigglesby Ltd manufactures trailers. The following information has been taken from the company accounts for the year to 30 June. Direct materials used $120,000 Direct Labour $30,000...

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