2.The following account balances and distribution of indirect charges are taken from the accounts of a manufacturing
Question:
2.The following account balances and distribution of indirect charges are taken from the accounts of a manufacturing concern for the year ending on 31st March, 2020. Item Total Amount Production Departments Service Departments _ (Rs.) A (Rs.) B (Rs.) C (Rs.) X(Rs.) Y(Rs.) Indirect Material 1,20,000 20,000 30,000 40,000 20,000 10,000 Indirect Labour 2,40,000 40,000 50,000 80,000 40,000 30,000 Superintendent Salary 80,000 80,000 Power 1,80,000 Rent & Rates 75,,000 Insurance 36,000 Meal Charges 60,000 Depreciation 3,60,000 _ The following department data are also available: _ Item Production Departments Service Departments A B C X Y Area (Sq.ft) 4,400 4,000 3,000 2,400 1,200 Capital Value of Assets (Rs.) 4,00,000 6,00,000 5,00,000 1,00,000 2,00,000 Kilowatt Hours 3,500 4,000 3,000 1,500 No. of Employees 60 70 120 30 20 _ Expenses charged to the service department are to be distributed to other departments in the following percentages: _ A B C X Y Department X 30 30 20 20 Department Y 25 40 25 10 _ Prepare on overhead distribution statement by using repeated distribution method to show the total overheads of production departments after re-apportioning service departments overhead. Show all the calculations to the nearest rupee.
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2. The following account balances and distribution of indirect charges are taken from the accounts of a manufacturing concern for the year ending on 31st March, 2020 Item Total Amount Production Departments (Rs.) 1,20,000 A (Rs.) 20,000 B (Rs.) C(Rs.) 30,00%) 40,00%) Service Departments X(Rs.) Y(Rs.) 20.000 10,000 Indirect Material 40,000 50,00%) 40,000 30,000 Indirect Labour Superintendent Salary 1, 2, 3) 80,000 80,000 80,000 Power 1,80,000 Rent & Rates Insurance 75.000 36,000 60,00 Meal Charges Depreciation 3,60,000 The following department data are also available: Item Production Departments A C 3.000 Service Departments X Y 2,400 1,20) Area (Sq.) 4,400 4,000 1,00,000 2,00,00%) Capital Value of Assets 4,00,000 6,00,000 5,00,000 (Rs.) Kilowatt Hours 3,500 4,000 3,000 No. of Employees 60 70 120 1,500 30 20 Expenses charged to the service department are to be distributed to other departments in the following percentages Y A 30 B 30 Department 20 20 Department Y 25 40 25 10 Prepare on overhead distribution statement by using repeated distribution method to show the total overheads of production departments after re-apportioning Service departments overhead Show all the calculations to the nearest rupee