Accounting

Part B Practical Questions (80 marks in total) Question 1 (10 marks) On 30 June 2020 Smalls Ltd showed following actual costs for the financial year just ended: Direct material used $300 000 Direct labour 250 000 Manufacturing overhead 298 000 The company's planned overhead rate is 120% of direct labour cost. The balances of inventory on 1 July 2019 were as follows: Raw material $30 000 Work in process 40 000 Finished goods 50 000 Each of those inventory balances was 20% higher on 30 June 2020. Required: (a) Prepare a Schedule of Cost of Goods Manufactured for the financial year; (5 marks) (b) Calculate the Cost of Goods Sold for the financial year. (5 marks) O W