Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi! Plz help me to figure out this question and explain how to calculate . Thank you a lot. Question 1 - Job costing (13

Hi! Plz help me to figure out this question and explain how to calculate .

Thank you a lot.

image text in transcribedimage text in transcribed
Question 1 - Job costing (13 Marks) The following incomplete information is provided in relation to Lido Ltd for the month of January. (i) Opening balances: Raw materials $21,500 Work in process (W1?) $43,300 Finished goods $77,600 (ii) Closing balances Raw material $23,400 WIP $38,200 Finished goods $46,800 (iii) The actual labour rate is $15 per hour, and overhead is applied on the basis of $16.50 per direct labour hour. (iv) Jobs sold during the month were sold for $421,000 (credit sales). The cost ofthe goods sold during the month was $352,000. (v) Indirect material worth $5,600 were issued to production during January. (vi) A total of 8,450 labour hours were worked during normal working hours. Employees also worked an additional 550 hours ofovertime during the month. Overtime hours are paid at a rate of 150% ofthe normal hourly rate. (vii) Sundry manufacturing overhead costs incurred during January were $120,000. Required: Complete the relevant T- accounts (provided on the next page) to show the flow ofcosts through the company's manufacturing accounts and answer the questions provided. (8 marks) Raw Materials Inventor Work in Process Inventory Finished Goods Inventory Cost of Goods Sold Manufacturing Overhead Sales

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions