Reference no: EM132638930
The following cost data for the year ending 30 June 2020 relate to Excite Technologies Ltd.Medical Equip Division:
Sales 480,000
Inventories at 1 july 2019
Raw materials 15,000
Work in process ?
Finished goods ?
Inventories at 30 June 2020
Raw materials 30,000
Work in process 5,000
Finished goods 25,000
Direct material used ?
Purchases of raw materials ?
Direct labour 125,000
Actual manufacturing overhead 189,500
Selling and administrative expenses ?
Total manufacturing costs 367,500
Cost of goods manufactured 377,500
Cost of goods available for sale 397,500
Cost of goods sold ?
Gross profit ?
Net profit 60,500
Aero Engines Division:
Sales ?
Inventories at 1 july 2019
Raw materials ?
Work in process 140,000
Finished goods 200,000
Inventories at 30 June 2020
Raw materials 320,000
Work in process ?
Finished goods ?
Direct material used 380,000
Purchases of raw materials 460,000
Direct labour ?
Actual manufacturing overhead 1,341,000
Selling and administrative expenses ?
Total manufacturing costs 2,630,000
Cost of goods manufactured 2,650,000
Cost of goods available for sale ?
Cost of goods sold 2,721,000
Gross profit 579,000
Net profit 159,000
The company uses normal costing and manufacturing overhead is applied at the rate of 150% of direct labour cost.
Over or under-applied manufacturing overhead is closed on an annual basis to the cost of goods sold and this has been included in the above data.
Required:
Question (a) Interpret the relationship between the cost figures above to determine the missing amounts in each of the divisions shown above.
Question (b) Calculate the amounts to be charged to work in process, finished goods inventory and cost of goods sold for the Aero Engines Division at the end of 30 June 2020 if the proration method is used. Provide your final answer to the nearest dollar.
Question (c) Prepare the necessary journal entries for (b) to describe the flow of costs.
|
How might a leader being highly creative inspire subordinate
: Describe a leadership situation in which a leader being a creative thinker would be more important than him or her being charismatic.
|
|
Find how much depreciation expense would appear on the tango
: Find How much depreciation expense would appear on the tango December 31, 2011, income statement? What is the book value of the computer at the end of 2012?
|
|
How did mcdonalds manage their busines
: What are the problems present in McDonalds as they embrace inclusion and diversity in the organization: in a paragraph. How did McDonalds manage their business
|
|
Prepare an estimate of the absolute minimum price
: Prepare an estimate of the absolute minimum price that Astra Controls Ltd could undertake the contract. Overheads The business normally includes a mark-up of 30
|
|
Calculate the amounts to be charged to work in process
: Calculate the amounts to be charged to work in process, finished goods inventory and cost of goods sold for the Aero Engines Division at the end
|
|
How the available capacity of max and lex should be utilised
: How the available capacity of Max and Lex should be utilised to maximise pro?ts. Owing to a shortage in supply, only 6 000 kg of raw material is available
|
|
How do calculate the material usage
: Negota Limited is a manufacturing company listed, How do Calculate the material usage, material mix and material yield variances for August 2020.
|
|
Find june direct material flexible-budget variance is
: Find June direct material flexible-budget variance is. During June, Heavy Products produced and sold 15,000 containers using 25,000 pounds
|
|
Calculate the material usage and material mix
: Calculate the material usage, material mix and material yield variances for August 2020. Negota Limited is a manufacturing company listed on the Johannesburg
|