Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribedimage text in transcribed
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

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_2

Step: 3

blur-text-image_3

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

Management And Cost Accounting

Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan

7th Edition

1292232668, 978-1292232669

More Books

Students also viewed these Accounting questions

Question

4. Similarity (representativeness).

Answered: 1 week ago