Give journal entries for the transactions 2016

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Reference no: EM131271032

Cost Accounting

Cost Accounting provides data for management accountant to use
Concerned with
   - Collecting cost data
   - Preparing statements
   - Applying costs to inventory, products and services

Cost accounts are used to calculate
   - Cost of goods or services produced
   - Cost of department
   - Revenue earned
   - Profitability of product etc.
   - Selling price

Cost Classification

By Element and Nature
- Materials
- Direct (can be traced in full to the product)
- Indirect (incurred in the course of making a product but cannot be traced directly and in full to the product or service)
- Labour
- Direct
- Indirect

Value of inventory

Future costs (budgeting)
- Budgetary control (variance)
Cost Classification
• By Element and Nature
- Materials
• Direct (can be traced in full to the product)
• Indirect (incurred in the course of making a product but cannot be traced directly and in full to the product or service)
- Labour
• Direct
• Indirect

Overheads
-Direct
- Indirect
By function

Production - Changed to goods (included in stock valuation)
Non-production - Changed to period
Admin
Selling
Distribution
Research etc.
Fixed or variables

Another way of classification is:

Fixed Cost
- Costs that do not change with level of activity

Variable Cost
- Costs that tends to vary with level of activity
Semi-Variable
Part fixed and part variable

Stepped Cost
Fixed up to a certain level of activity, rise and stays fixed again until another level

Direct Materials + Direct Labor + Direct Expenses = Prime Cost

Indirect Materials + Indirect Labor + Indirect Expenses = Overheads

Prime Cost + Overheads = Total Cost

Variable cost

Give Journal entries for the following Cash transactions

1. Buy goods for resale cosisig RO 1000

2. Sell Goods for RO 200

3. Pay electricity bill RO 120

4. Buy a delivery van RO 650

5. Buy petrol costing RO lb Iot*

Give Journal entries for the following Credit transactions
1. The business sells goods on credit to a customer ABC Ltd RO 2,500
2. The business buys goods on credit from a supplier XYZ Ltd IRO 125

Give journal entries for the following transactions 2016

Jan 1 Purchased goods for cash RO 5,000.
Jan 2 -Purchased goods on credit from Mr All RO 6,500
Jan 5 Rent paid RO 500
Jan 6 Commission received RO 1,000
Jan 7 Goods sold for cash RO 1,500
Jan 8 Sold goods on credit to Mr Aiman RO 2,500
Jan 9 Paid cash to Mr All in full settlement of his account RO 6,450
Jan 10 Cash received in full settlement from Mr Aiman RO 2,460

List the debit and credit entries for the following transactions:

1. Proprietor introduces capital RO 20,000

2. Bought a machine on credit from Mr Swann, cost RO 8,000

3. Bought goods on credit from Paul Ltd, cost RO 500

4. Paid wages RO 4,000

5. Received rent RO 700

10. Journalize the following transactions:

2016
Jan 1 Mr. Yahya started business with OMR 100,000
Jan 2 Amount deposited in bank OMR 75,000
Jan 3 Goods purchased on credit OMR 24,000
Jan 3 Purchased goods for cash OMR 15,000
Jan 4 Sold goods costing for OMR 30,000 cheque received
Jan 5 Furniture purchased OMR 5,000 for cash
Jan 6 Paid rent OMR 1,200 for cash
Jan 7 Commission received OMR 2,000 in cash

Reference no: EM131271032

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