BabyBlue Limited manufactures receiving blankets for newborn babies.

$$ The following Information relates to the manufacturing costs incurred during the year ended $30$ June $20$X$6$:

o Estimated normal annual production level $100000$ blankets

o actual annual production $60000$ blankets.

o Ending inventory: $1000$ units $($finished goods$)$

o Direct materials purchased C$8$ per unit.

o Direct labour C$6$ per unit

o Variable overheads C$4$ per unit

o Fixed overheads C$60000($annual$)$

$$ 

 

Required:

a$)$ Calculate the value of the inventory $30$ inventory at $30$ June $20$X$6.$

b$)$ Calculate the portion of the fixed manufacturing overheads capitalized to inventory during the year ended $30$ June $20$X$6.$

c$)$ Calculate the portion of the fixed manufacturing overheads still in inventory at $30$ June $20$X$6.$

d$)$ Calculate the portion of the fixed manufacturing overheads that have been expensed during the year ended $30$ June $20$X$6.$

e$)$ Show all journals possible. Assume that all transactions$/$ events were processed as single transactions and that, where applicable, amounts were paid in cash.

f$)$ Calculate the amount at which cost of inventories expense will be disclosed in the statement of comprehensive income for the year ended $30$ June $20$X$6.$

Ignore tax.

 

 

Part B

Use the same information as that provided in Part A but assume:

$$ The actual annual production totalled $120000$ units $($instead of $60000$ units$).$