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Posted on Sep 12, 2024

Question 1: On October 18, 2017 Company B receives an order from one of its customer to be completed by October 24, 2017. Company prepared

Question 1: On October 18, 2017 Company B receives an order from one of its customer to be completed by October 24, 2017. Company prepared the necessary calculations to determine the manufacturing cost of this order to propose a price to the customer. Production activities of Company B related to this job are below: 1. The company purchases 600.000 TL worth material during the period. 2. Cost of direct material used in manufacturing is 400.000 TL 3. Cost of indirect material used in manufacturing is 150.000 TL 4. Total salary expenses incurred by the company is 1.500.000 TL and it can be grouped as follows: i. Direct labor : 800.000 TL ii. Indirect labor iii. Administrative Salaries : 450.000 TL 5. Sales revenue earned is 3.000.000 TL Actual manufacturing and operating expenses for the month of October are known at exact amounts as of November 5, 2017 and are as follows: 6. Repair and maintenance expense of manufacturing equipment for this job/order is 175.000 TL. 7. Depreciation expense of manufacturing machinery for this job/order is 100.000 TL 8. The company paid 180.000 TL for insurance of manufacturing plant. 9. The company paid 10.000 TL for utilities expense of administrative department. 10. From utilities expense of manufacturing department for the current period, 200.000 TL is assigned to this job/order. 11. From rent expense of manufacturing department, 120.000 TL is assigned to this order. 12. Depreciation expense of administrative department is 70.000 TL 13. Ending WIP Inventory is 300.000 TL. Material Inventory, 200.000 TL, October 17 2017 WIP Inventory, 100.000 TL, October 17 2017 Finished Goods Inventory, 50.000 TL, October 17 2017 Required: a) Record the journal entries of transactions for the period. b) Calculate actual amount of Gross P/L. Question 2: The data about Company ATS is given below: Direct material Inventory, January 1, 2018 .......... WIP Inventory, January 1, 2018.. Finished Goods Inventory, January 1 2018. Cleaning supplies for manufacturing plant....... Fuel expense of transportation vehicles ...... Utilities expense of marketing department....... Direct material purchase .................. Catering expense of manufacturing department... Cleaning supplies expense for human resources ............. Direct labor. Rent on manufacturing plant....... Indirect labor........ Salary expense of product quality controller...... Insurance expense of manufacturing equipment... ...... Depreciation expense of manufacturing equipment Depreciation expense of office equipment............ Insurance expense of marketing vehicles........ Advertising expense. Rent on administrative building ................. Salary expense of sales employee ........... Direct material Inventory, December 31, 2018...... WIP Inventory, December 31, 2018.................. Finished Goods Inventory, December 31, 2018. Sales Revenue................ Interest revenue Interest expense ....................... Tax expense.................. Sales return and allowances. Sales discount. Dividend revenue.............. Rent Revenue ................. .. 180.000 440.000 .310.000 12.000 280.000 25.000 750.000 36.000 12.000 640.000 180.000 90.000 30.000 240.000 48.000 64.000 .65.000 164.000 120.000 260.000 80.000 240.000 180.000 5.200.000 35.000 220.000 20% 120.000 80.000 20.000 .260.000 Required: Prepare a cost of Goods Manufactured/Sold Statement and an Income Statement of Company ATS for the year 2018. Question 1: On October 18, 2017 Company B receives an order from one of its customer to be completed by October 24, 2017. Company prepared the necessary calculations to determine the manufacturing cost of this order to propose a price to the customer. Production activities of Company B related to this job are below: 1. The company purchases 600.000 TL worth material during the period. 2. Cost of direct material used in manufacturing is 400.000 TL 3. Cost of indirect material used in manufacturing is 150.000 TL 4. Total salary expenses incurred by the company is 1.500.000 TL and it can be grouped as follows: i. Direct labor : 800.000 TL ii. Indirect labor iii. Administrative Salaries : 450.000 TL 5. Sales revenue earned is 3.000.000 TL Actual manufacturing and operating expenses for the month of October are known at exact amounts as of November 5, 2017 and are as follows: 6. Repair and maintenance expense of manufacturing equipment for this job/order is 175.000 TL. 7. Depreciation expense of manufacturing machinery for this job/order is 100.000 TL 8. The company paid 180.000 TL for insurance of manufacturing plant. 9. The company paid 10.000 TL for utilities expense of administrative department. 10. From utilities expense of manufacturing department for the current period, 200.000 TL is assigned to this job/order. 11. From rent expense of manufacturing department, 120.000 TL is assigned to this order. 12. Depreciation expense of administrative department is 70.000 TL 13. Ending WIP Inventory is 300.000 TL. Material Inventory, 200.000 TL, October 17 2017 WIP Inventory, 100.000 TL, October 17 2017 Finished Goods Inventory, 50.000 TL, October 17 2017 Required: a) Record the journal entries of transactions for the period. b) Calculate actual amount of Gross P/L. Question 2: The data about Company ATS is given below: Direct material Inventory, January 1, 2018 .......... WIP Inventory, January 1, 2018.. Finished Goods Inventory, January 1 2018. Cleaning supplies for manufacturing plant....... Fuel expense of transportation vehicles ...... Utilities expense of marketing department....... Direct material purchase .................. Catering expense of manufacturing department... Cleaning supplies expense for human resources ............. Direct labor. Rent on manufacturing plant....... Indirect labor........ Salary expense of product quality controller...... Insurance expense of manufacturing equipment... ...... Depreciation expense of manufacturing equipment Depreciation expense of office equipment............ Insurance expense of marketing vehicles........ Advertising expense. Rent on administrative building ................. Salary expense of sales employee ........... Direct material Inventory, December 31, 2018...... WIP Inventory, December 31, 2018.................. Finished Goods Inventory, December 31, 2018. Sales Revenue................ Interest revenue Interest expense ....................... Tax expense.................. Sales return and allowances. Sales discount. Dividend revenue.............. Rent Revenue ................. .. 180.000 440.000 .310.000 12.000 280.000 25.000 750.000 36.000 12.000 640.000 180.000 90.000 30.000 240.000 48.000 64.000 .65.000 164.000 120.000 260.000 80.000 240.000 180.000 5.200.000 35.000 220.000 20% 120.000 80.000 20.000 .260.000 Required: Prepare a cost of Goods Manufactured/Sold Statement and an Income Statement of Company ATS for the year 2018