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Please answer if can answer all with detail xplanation, thank you. Perfect Living Pte Ltd manufactures all types of custommade furniture. It uses a jobcosting
Please answer if can answer all with detail xplanation, thank you.
Perfect Living Pte Ltd manufactures all types of custommade furniture. It uses a jobcosting system and applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totalled $2,400,000. It has a maximum capacity of 320,000 machine hours. However, it is budgeted to be able to use 75% of this capacity during this period. On 31 July, Perfect Living Ptc Ltd has the following balances: Work in process inventory I Job number 422 $18,000 0 Job number 423 $8,620 Raw materials inventory $13,360 Finished goods inventory 0 Job number 421 $23,000 In August, the following occurred: (i) Raw materials purchased on credit $4,840 (ii) Raw materials requisitions I Job number 422 $1,020 I Job number 423 $600 II Job number 424 $2,480 I Indirect materials {used in production} $600 (iii) Machine hours, direct labour hours and wages for factory employees Job number Machine hours Labour hours Wages 422 2,400 2,320 $24,480 423 880 T20 $8,640 424 3,900 2,860 $40,100 Indirect labour 600 $5,880 (iv) Other overhead incurred: I Depreciation machineries $4,000 I Depreciation delivery vans $400 I Salaries production $10,000 I Salaries sales and administration $2,000 I Other factory costs $15,600 I Other selling and administration costs $9,600 (v) Spoilage 3:. reworked costs a Job number 422 Normal spoilage with estimated disposal selling price of $320 was incurred. Job number 423 Normal spoilage amounting to $70 and abnormal spoilage of $30 were incurred. Job number 424 Rework cost of $52 was incurred. (vi) Job number 422 and Job number 423 were completed during the month. (vii) Job number 421 was sold for cash at a mark-up of 30% on cost while Job number 422 was sold on credit at a price that allowed the company to earn a gross profit margin of 20%Step by Step Solution
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