Bigglesby Ltd manufactures trailers.
The following information has been taken from the company accounts for the year to 30 June.
Direct materials used
Selling and Administration Expenses
Please calculate the following
(a) Prime Cost
(b) Factory Overhead Cost
(c) Total Cost of Goods Manufactured
(d) Total Period Costs
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)
Issue of direct materials to jopbs in process
Indirect materials issued
Inspected material found faulty and returned to suppliers
Direct labour charged to production
Factory labour payroll (including tax withheld $3,000)
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
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
The following information is extracted from the books of Bucknor Manufacturing Pty Ltd for the year ended 30/6/16.
Purchase of materials
Direct Wages Paid
Supervisor Wages Paid
Depreciation – Factory Plant
Beginning and end of year balances are:
Work in Process
Direct Wages Accrued
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