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Journal, Cost Sheet and Income Statement

Problem-1 (Matz and Usry-32) !"#-1$

Following transactions pertain to manufacturing operations:

a. Materials were issued as follows: direct Tk. 24,500; indirect 4,500.b.

pa!roll of Tk. 44,000 was recorded. "ncome ta# wit$$eld, Tk. %,000; F"& ta#

rate %'.c. T$e pa!roll consisted of Tk. (0,000 direct labor , Tk. ),000 indirect factor! labor,

and *,000 sales salaries. +tate unemplo!ment insurance is 5.4', and federal is

0.*'. T$e emplo!ers F"& ta# rate was %'.

d.Miscellaneous factor! e#penses incurred will re-uire a cas$ e#penditure of Tk.

%,500, /o not ournali1e t$e cas$ pa!ment.

e. Factor! o3er$ead of Tk. 5,000 was c$arged to production.

f. &ost of production completed during t$e period totaled Tk. )0,000.g.

Material purc$ased totaled Tk. 50,000.$.

oods costing Tk. 20,000 were s$ipped to customers at a sales price of Tk. 2),000.

6e-uired: 7repare ournal entries for t$e abo3e transactions.

Problem-2 (Matz and Usry-33) !"#-2$

&ost of goods manufactured statement. Mason &ompan! manufactures special mac$inesmade to customer specifications. T$e following information was a3ailable at t$e

beginning of 8ctober:

Materials in3entor!999999.. Tk. )2,000

ork in 7rocess in3entor!999.. Tk. ()00

/uring 8ctober, direct materials costing Tk.20,000 were purc$ased, direct labor cost

totaled Tk. ),500, and factor! o3er$ead was Tk. *5*0.

8ctober ( in3entories were:Material "n3entor!9999999 Tk.%,000

ork in process in3entor!9999 Tk.*20

6e-uired

7repare a cost of goods manufactured statement for 8ctober,

Problem-3 !"#-3, Matz and Usry-33$

Manufacturing costs; cost of goods sold. T$e /ecember (, < trial balance of Menges

&ompan! s$owed:

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+ales 99999 Tk.4000500 +ales return and allowance 9Tk. 25200

7urc$ase =et9. Tk. 2400000 Factor! o3er$ead 99.. Tk. **5)00Transportation in9 Tk. (2000 d3ertising 9999.. Tk. 55000

/irect labor 99.. Tk. (204000 /eli3er! e#penses99. Tk. )5,000

+ales salaries 99 Tk. 200000

"n3entories: /ecember (, < /ecember (,

Finis$ed oods Tk. 4)%400 Tk. )20000ork in 7rocess Tk. ()*00 Tk. 2*00

Materials Tk. )000 Tk. %)000

6e-uired: /etermine t$e total manufacturing cost, 2 cost of goods manufactured andt$e ( cost of goods sold.

Problem % e"-%, Matz and Usry-33$

T$e accounting department of Mic$aelson &ompan! pro3ided t$e following data forMa! sales Tk. %2,000; marketing e#penses Tk. (,)00; administrati3e e#penses Tk. %20,

ot$er e#penses Tk. ()0; purc$ases Tk. (),000; factor! o3er$ead Tk. 0,000 direct laborTk. 5,000.

"n3entories nding

Finis$ed goods 99999999999.. Tk. %,000 Tk. 0,250

ork in process 99999999999.. Tk. *,000 Tk. 5,000

Materials 99999999999.. Tk. *,000 Tk. *,500

6e-uired:

i. +tatement of cost of goods soldii. "ncome statement

Problem& ' -2$

*+ td, a manuactur.n/ com0any, .ncurred the ollo.n/ e"0enses dur.n/ a

certa.n 0er.od# ou are reu.red to 0re0are a statement sho.n/ the subd.4.s.on o

total cost#

Materials used in obs,20,54

0

/epreciation of

plant (,*00

ages traceable to ob *),)50/epreciation of deli3er!3ans ,)00

ages paid to man on maintenancework 2,)00 "nsurance of finis$edgoods 2,500Factor! rent or rates *,(00 ?ubricating oil 250

&arriage outwards 2,*00

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(2

+alesmenAs salaries 5,00 /i3idends paid ),*00

&arriage inwards on rawmaterials *)0

?ig$ting ofs$owroom ,500

ork salaries 20,400

8ffice salaries and

e#penses %,000&onsumable stores (40 "ncome ta# *,)00

Problem& 5 -3$

6he accounts o P#+ Manuacturers td, or the year end.n/ on 31st ecember,

177', sho the ollo.n/&

+tock of materials on (st Banuar!, 5 )%,200

Materials purc$ased 2,5,000

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Materials used,*0,00

0

Manual and mac$ine labor wages directl!c$argeable

,)0,000

orks o3er$ead

e#penditure 40,000>stablis$ment and general e#penses ,000

(a) +$ow t$e works cost and total cost, t$e percentage t$at t$e works o3er$ead cost

bears to t$e manual and mac$ine labor wages and t$e percentage t$at t$e

establis$ment and general e#penses bear to t$e works cost.

(b) $at price s$ould compan! -uote to manufacture a compan! w$ic$, it is

estimated will re-uire an e#penditure of Tk. ),000 on wages so t$at it will !ield a

profit of 25' on t$e total cost or 20' on selling price.