Find out the memorandum reconciliation account, Cost Accounting

Assignment Help:

Find Out the Memorandum Reconciliation Account

The givens are the final accounts of a company for the year ending on date 31st December 1999. Manufacturing Trading Loss and Profit Appropriation Account as:

 Total Factory Costs     c/d

 311,000

 Sales

480,000

 Finished Goods:  opening stock

20,000

 

 

 Cost of Goods Manufactured

 

 

 

 And Transferred b/d

311,000

 

 

 

331,000

 

 

 Less Closing stock

(22,000)

 

 

 

309,000

 

 

 Gross Profit c/d

171,000

 

______

 

480,000

 

480,000

 Expenses

 

 

 

 Office Salaries:          

35,000

 Gross Profit b/d

171,000

 Office Expenses:

20,000

 Dividends Received

3,000

 Salesman Commissions         

18,000

 Interest on Bank Deposits

1,000

 Selling Expenses:

15,000

 

 

 Loss on sale of land

1,000

 

 

 Distribution Expenses

13,000

 

 

 Interest on Mortgage

2,000

 

 

 Fines   

1,000

 

 

 Net Profit c/d

  70,000

 

______

 

175,000

 

175,000

 Taxation

  24,000

 Net Profit b/d

70,000

 Transfers to General Reserve

    9,000

 Retained Earnings b/f

36,000

 Ordinary share dividend

18,000

 

 

 Preference Dividends

11,000

 

 

 Goodwill written off

  37,000

 

_______

 

106,000

 

106,000

 

 

 Retained Profit b/f     

37,000

Additional Information

1.  The cost accounting records appears as given:

2. Profits were shs.114, 000.  Office expenses and office salaries provided for as in the financial books

(i) Opening Stocks:     

Raw Materials            26,000

Work in Progress       21,000

Finished Goods          23,000

(ii) Closing Stocks:  Raw Materials          30,000

                             Work in Progress      20,000

                             Finished Goods         24,000

Required 

Prepare a memorandum Reconciliation account.

Solution

Memorandum Reconciliation Account as:

 

 

Profits as Per Cost Books

 

114,000

Items not Debited in Cost A/Cs           

 

Items not Credited in Cost A/Cs

 

 

Stock Differences:  Opening Stocks

 

Dividends Received    

3,000

 

   Of Raw Materials               

1,000

Interest Received       

1,000

 

Loss on Sale of Plant              

1,000

Differences in Stocks

 

 

Fines                           

1,000

W.I.P. (Opening Stocks)

2,000

 

Interest on Mortgage

2,000

 Opening Finished Goods

3,000

 

Selling Expenses         

15,000

W.I.P: Closing stocks  

1,000

 

Salesman Commission                       

18,000

 

10,000

 

Distribution Expenses            

13,000

 

 

 

Stock Differences:

 

 

 

 

Raw Materials: Closing                      

1,000

 

 

 

Finished Goods:             Closing

2,000

 

 

 

Net Profit as Per the Financial Books: 

 

70,000

 

 

 

______

 

124,000

 

 

124,000

 

Working

 

Financial A/Cs

Cost  A/Cs

Differences

Work in Progress:  Opening Stocks:

29,000

21,000

2,000

Finished Goods:  Opening Stocks:

20,000

23,000

3,000

Raw Materials:  Opening Stocks:

27,000

26,000

1,000

Closing Stocks: 

 

 

 

Work in Progress:

21,000

20,000

1,000

Finished Goods:

22,000

24,000

2,000

Raw Materials:

29,000

30,000

1,000

 


Related Discussions:- Find out the memorandum reconciliation account

Objective type question, 9. When in the management process do managers seek...

9. When in the management process do managers seek an answer to the question "Did we meet our cost-reduction goals for non-value-adding activities?" a. Planning b. Performing c. Ev

Single entry and incompelet records, draw up statements of affairs to show ...

draw up statements of affairs to show the profit or loss for the year

Relevant costs, What are investment appraisal methods when opening a new pr...

What are investment appraisal methods when opening a new project?

Cash cycle, The Cash Cycle: so as to deal with the problem of cash managem...

The Cash Cycle: so as to deal with the problem of cash management we should have a concept about the flow of cash by a firm's accounts. The entire process of such cash flow is ide

Methods required to allocate joint costs, Methods Required To Allocate Join...

Methods Required To Allocate Joint Costs 1) Physical/Unit Measure 2) Constant gross margin rate 3) Net realizable value.

Calculate development cost, Candler Inc a computer software development fir...

Candler Inc a computer software development firm has stock outstanding as follows: 40,000 shares of $2 nonparticipating, noncumulative preferred stock of $10 par, and 250,000 share

Costs of the service departments, Bull Bay Ltd. Manufacturers two types of ...

Bull Bay Ltd. Manufacturers two types of surfboard, "Winner" and "Surf King", whose selling prices are $300 and $900 respectively. Each surfboard passes through two manufacturing d

Advantages of standard costing, Advantages of Standard Costing 1. Man...

Advantages of Standard Costing 1. Management via Exception: the standard costing is an example for management via exception. By studying the variances, management's attentio

Expenditure for the base period and the current period, 1. The table below ...

1. The table below gives data for Southland where there are three consumption goods: bananas, coconuts and grapes. Goods Quantity in base period basket

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd