Green Scenery Company provides landscape services and operated based on customer order. The company uses normal...
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Green Scenery Company provides landscape services and operated based on customer order. The company uses normal costing, and the overhead allocation base is direct labour costs. On 1st May, the balance of raw material inventory was RM24,000. There were two incomplete jobs as of 1st May, with the following costs: Direct materials Direct labour Applied overhead Total costs Job 47 Zee Enterprise RM10,250 Job 33 Bell Company RM35,000 9,000 17,500 2,700 RM21,950 5,250 RM57,750 In May, Green Scenery also started production of two news jobs. Job 47 and Job 33 were continued of which Job 33 completed and billed to Bell Company. Details of the costs incurred during May by each job is as follows: Direct materials Direct labour Job 47 RM2,000 3,000 Job 33 RM3,200 4,500 Job 51 RM4,600 5,900 Job 52 RM2,000 1,600 Other transactions in May: 1. Received payment of RM12,500 for Job 34 that was delivered to the customer in April. 2. Purchased raw materials for RM9,400. 3. Sent a bill of RM87,500 to Bell Company and received RM50,000 payment from the amount. 4. Incurred indirect labour salary costs RM650. 5. Material supplies used for current jobs costs RM155. 6. Recorded the following overhead costs and advertising costs (all costs are cash except machine depreciation): Property taxes RM550 Material storage rental 675 Inspection costs 200 Transportation costs 320 Telephone and other miscellaneous 325 Machine depreciation 450 Advertising costs 600 Required: a) Prepare the journal entries to record all transactions occurred in May. b) Prepare the adjusting entry for over applied or under applied overhead in May. Charge the overhead variance to the cost of goods sold account. c) Determine the ending balance of work in process account in May. Green Scenery Company provides landscape services and operated based on customer order. The company uses normal costing, and the overhead allocation base is direct labour costs. On 1st May, the balance of raw material inventory was RM24,000. There were two incomplete jobs as of 1st May, with the following costs: Direct materials Direct labour Applied overhead Total costs Job 47 Zee Enterprise RM10,250 Job 33 Bell Company RM35,000 9,000 17,500 2,700 RM21,950 5,250 RM57,750 In May, Green Scenery also started production of two news jobs. Job 47 and Job 33 were continued of which Job 33 completed and billed to Bell Company. Details of the costs incurred during May by each job is as follows: Direct materials Direct labour Job 47 RM2,000 3,000 Job 33 RM3,200 4,500 Job 51 RM4,600 5,900 Job 52 RM2,000 1,600 Other transactions in May: 1. Received payment of RM12,500 for Job 34 that was delivered to the customer in April. 2. Purchased raw materials for RM9,400. 3. Sent a bill of RM87,500 to Bell Company and received RM50,000 payment from the amount. 4. Incurred indirect labour salary costs RM650. 5. Material supplies used for current jobs costs RM155. 6. Recorded the following overhead costs and advertising costs (all costs are cash except machine depreciation): Property taxes RM550 Material storage rental 675 Inspection costs 200 Transportation costs 320 Telephone and other miscellaneous 325 Machine depreciation 450 Advertising costs 600 Required: a) Prepare the journal entries to record all transactions occurred in May. b) Prepare the adjusting entry for over applied or under applied overhead in May. Charge the overhead variance to the cost of goods sold account. c) Determine the ending balance of work in process account in May.
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Answer rating: 100% (QA)
Lets first analyze the transactions and then prepare the journal entries 1 Received payment of RM12500 for Job 34 that was delivered to the customer i... View the full answer
Related Book For
Management Accounting
ISBN: 9780077185534
6th Edition
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
Posted Date:
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