6:09 Safari il 4G Question 3) 13 Marks NOTE: Use option below to complete general ledgers in case studies Option Option A Carch Bal. b/d $10,000 $10,000 $5,000 Balc/d $15,000 $20,000 $20,000 $10,000 $10.000 $5.000 $20,000 $5,000 Balb/d $15,000 ER 515.000 Master Factory uses a job-order casting system and applies factory overhead (FOH) to work-in-process inventory using a budgeted overhead rate. The activity base used by the factory is "labour hours. The factory does not se Overhead Applied and Under(Over) applied Overhead account. The applied ovestead is credited to the Factory Overhead accounts before the actual overhead are incurred, and it is debited to Work in Process Inventory account. Any difference in the balances in the Factory overhead account will be closed off to Coast of Sales account directly Note: The budgeted overhead rate is $20 per labour hour. The factory used 8,000 labour hours during the period. The inventory balances at the beginning of the period were $50,000 for raw materials, $70,000 for work in process and $90,000 for finished goods Assume the opening balances of other extracted accounts were zero. The factory incurred the following transactions during a period: A. Raw materials purchased on accounts for $200,000 B. Raw materials assigned to the job#: 580,000 direct and $40.000 indirect. C. Factory payroll incurred, $150,000: General Labour costs are not included D. Factory labour costs assigned to the job: $80,000 direct and $70,000 indirect E. Factory overhead assigned to production using a predetermined overhead F. Additional overhead costs were billed. $55,000 G. Jobs completed and transferred to finished goods at cost $160,000 H. Jobs with a cost of $270,000 were sold on account for $170,000 Under/Over-applied overheads were dosed off to the Cost of Sales account Required: facere OST ond Income Tax A) Journalise the above transactions (6 marks B) Post general journal to General ledger accounts make an adjustment it necessary (4 marks) C) Short answer question [3 marks) A) Journalise the above transactions (6 marks) #Accounts 6:09 Safari 1.VIII WIELU l 4G Required Ignore GST and Income Tax A) Journalise the above transactions (6 marks) B) Post general Journal to General ledger accounts (make an adjustment it necessary) (4 marks) Short answer question (3 marks) A Jourmalise the above transactions (5 marks) #Accounts Dr Cr A Raw material purchased Raw materials requisitioned to job # Factory Labour incurred D Labour costs assigned to job? E Factory overhead applied F Additional actual overhead incurred G Completion of jobs R Sole of lob # II Under/over-applied overhead dosed off B) Post general journal to General ledger accounts make an adjustment if necessary) (4 marks) Raw Materials Inventory Work in Preserventory 6:09 Safari . 4G 8) Post general journal to General ledger accounts (make an adjustment if necessary (4 marks) Raw Materials inventory Work In Process Inventory 88 88 EB EB Factory Labour (Wages and Salaries) 88 SO Finished Goods Inventory BB FB EB Factory Overhead SO BB Cost of Sales COGS SO BB EB Sales Revenue Accounts Payable BB SO BB $o EB Accounts Receivable SO BB Wages Payable 88 SO EB C) the ending inventory is overstated because of an error, what is the effect on profit in that reporting year and in the next reporting year? What is the effect on the value of assets as reported in the balance sheet at the end of each year? (3 marks) II 6:09 Safari il 4G EB Accounts Receivable Wages Payable BB $0 EB EB C) If the ending inventory is overstated because of an error, what is the effect on profit in that reporting year and in the next reporting year? What is the effect on the value of assets as reported in the balance sheet at the end of each year
