assignmentt

Required:
1. Calculate the company’s predetermined overhead rate for the cu
ent year.
Ans –
    Particulars
    Amount/Hours/Rate
    Budgeted total manufacturing overhead (A)
    $400,600
    Budgeted total direct labour hours (B)
    20,030
    Predetermined O/H rate (A/B)
    20
2. Complete job cost sheet for job number T81.
Ans –
    Job Cost Sheet for Job T81
    Particulars
    Quantity/hours
    Rate
    Amount ($)
    Direct Material
    250
    5
    1,250
    Direct Labou
    800
    18
    14,400
    Manufacturing
Overhead
    800
    20
    16,000
     
    Total Cost
    
    31,650
3. Prepare journal entries to record the events of March.
Ans –
    S.No.
    Particulars
    Debit ($)
    Credit ($)
    a
    Raw Material
    8,000
    
     
    To Accounts payable
    
    8,000
     
    (Being Sami sheet purchased)
    
    
    
    Raw Material
    5,300
    
     
    To Accounts payable
    
    5,300
     
    (Being Sami tubing purchased)
    
    
    c
    Work in Process
    11,250
    
     
    To Raw Material
    
    11,250
     
    (Being raw material transfe
ed
to WIP) = (250 * $5 + 1000*$10)
    
    
    d
    Manufacturing Overhead
    10
    
     
    To Manufacturing Inventory
    
    10
     
    (Cost of valve lu
icant)
    
    
    e
    Work in Process
    30,600
    
     
    Manufacturing Overhead
    11,950
    
     
    To Wages Payable
    
    42,550
     
    (Being Direct labour wages and
indirect labour wages payable)
    
    
    f
    Work in Process
    34,000
    
     
    To Manufacturing Overhead
    
    34,000
     
    (Being applied manufacturing O/H)
    
    
    g
    Manufacturing Overhead - Depreciation
    11,300
    
     
    To Acc Dep - Building & Equipment
    
    11,300
     
    (Being depreciation charged)
    
    
    h
    Manufacturing Overhead - Rent
    1,130
    
     
    To Cash
    
    1,130
     
    (Being rent paid)
    
    
    i
    Manufacturing Overhead - Electricity
    1,995
    
     
    To Accounts payable
    
    1,995
     
    (Being electricity bill for March Payable)
    
    
    j
    Manufacturing Overhead - Taxes
    2,260
    
     
    To Cash
    
    2,260
     
    (Being taxes paid)
    
    
    k
    Manufacturing Overhead - Insurance
    2,960
    
     
    To Prepaid Insurance
    
    2,960
     
    (Being Insurance expense booked)
    
    
    l
    Selling & Admin Expenses - Salaries
    7,300
    
     
    To Cash
    
    700
     
    (Being salaries paid)
    
    
    m
    Selling & Admin Expenses - Depreciation
    3,650
    
     
    To Acc Dep - Building & Equipment
    
    3,650
     
    (Being depreciation charged)
    
    
    n
    Selling & Admin Expenses - Othe
    1,000
    
     
    To Cash
    
    1,000
     
    (Being other selling expenses paid)
    
    
    o
    Finished Goods
    31,650
    
     
    To Work In Progress
    
    31,650
     
    (Being WIP t/f to Finished Goods)
    
    
    p
    Accounts receivable
    28,000
    
     
    To Sales
    
    28,000
     
    (Being 40 trombones sold @$900 each)
    
    
    q
    Cost of Goods Sold
    15,825
    
     
    To Finished Goods
    
    15,825
     
    (Cost of 35 trombones sold)
    
    
4. Set up ledger accounts, and post the journal entries made in requirement 3.
Ans –
    Cash
    
    
    
    
    
    Particulars
    JE Ref
    Debit ($)
    Particulars
    JE Ref
    Credit ($)
    To Balance
d
     
     9,000
    Manufacturing Overhead - Rent
    h
     1,130
     
     
     
    Manufacturing Overhead - Taxes
    j
     2,260
     
     
     
    Selling & Admin Expenses - Salaries
    l
     7,300
     
     
     
    Selling & Admin Expenses - Othe
    n
     1,000
    
    
    
    
    
    
    Accounts Rec.
    
    
    
    
    
    Particulars
    JE Ref
    Debit ($)
    Particulars
    JE Ref
    Credit ($)
    To Balance
d
     
     19,000
     
     
     
    To Sales
    p
     28,000
     
     
     
    
    
    
    
    
    
    Prepaid Ins.
    
    
    
    
    
    Particulars
    JE Ref
    Debit ($)
    Particulars
    JE Ref
    Credit ($)
    To Balance
d
     
     6,920...