Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 3 (31 Marks ) The following is available for Sparkle Ltd Manufacturers for the year ended 28 February 2019: Balances 01 March 2018 28

image text in transcribed
QUESTION 3 (31 Marks ) The following is available for Sparkle Ltd Manufacturers for the year ended 28 February 2019: Balances 01 March 2018 28 February 2019 Direct material 14 000 19 000 Work in process 6 000 40 000 Finished products 1 000 2 700 Rent paid in advance - factory 1 000 Water & Electricity in arrears - factory 700 Transaction occurred during the year - all cash, all factory: Water & electricity - factory 20 000 Indirect wages - factory 10 000 Material purchased cash (direct) 60 000 Depreciation factory 8 000 Indirect material purchased cash 14 000 Indirect material used 12 000 Direct labour 75 000 Other overheads paid 12 000 Insurance-factory 14 000 Rent- factory 28 000 Direct material used 55 000 Additional information: Overheads are allocated at 200% of direct material cost Rent in arrears at the end of 2019 was N$ 800 Water & electricity in arrears at the end was N$ 600 Overhead applied are recovered against cost of sales Finished products are transferred to the sales department at cost price plus 20% You are required to: a) The Manufacturing Cost Statement for Sparkle Ltd Manufacturers for the year ended 28 February 2019 (14 marks) b) Prepare the following general ledger account for the year ended 28 February 2019 Manufacturing overhead account. (7 marks) c) Prepare the extracted statement of financial position as at 28 February 2021 only showing inventory (5 marks) Explain the concept of unrealised profits and when it may be applied

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

Financial Accounting

Authors: Tony Davies, Ian Crawford

1st Edition

0273723073, 9780273723073

More Books

Students also viewed these Accounting questions

Question

What are the responsibilities of an investment center manager?

Answered: 1 week ago

Question

What are the attributes of a technical decision?

Answered: 1 week ago

Question

How do the two components of this theory work together?

Answered: 1 week ago

Question

How can we confi rm both ourselves and others?

Answered: 1 week ago