Find out the memorandum reconciliation account, Cost Accounting

Assignment Help:

Find Out the Memorandum Reconciliation Account

The givens are the final accounts of a company for the year ending on date 31st December 1999. Manufacturing Trading Loss and Profit Appropriation Account as:

 Total Factory Costs     c/d

 311,000

 Sales

480,000

 Finished Goods:  opening stock

20,000

 

 

 Cost of Goods Manufactured

 

 

 

 And Transferred b/d

311,000

 

 

 

331,000

 

 

 Less Closing stock

(22,000)

 

 

 

309,000

 

 

 Gross Profit c/d

171,000

 

______

 

480,000

 

480,000

 Expenses

 

 

 

 Office Salaries:          

35,000

 Gross Profit b/d

171,000

 Office Expenses:

20,000

 Dividends Received

3,000

 Salesman Commissions         

18,000

 Interest on Bank Deposits

1,000

 Selling Expenses:

15,000

 

 

 Loss on sale of land

1,000

 

 

 Distribution Expenses

13,000

 

 

 Interest on Mortgage

2,000

 

 

 Fines   

1,000

 

 

 Net Profit c/d

  70,000

 

______

 

175,000

 

175,000

 Taxation

  24,000

 Net Profit b/d

70,000

 Transfers to General Reserve

    9,000

 Retained Earnings b/f

36,000

 Ordinary share dividend

18,000

 

 

 Preference Dividends

11,000

 

 

 Goodwill written off

  37,000

 

_______

 

106,000

 

106,000

 

 

 Retained Profit b/f     

37,000

Additional Information

1.  The cost accounting records appears as given:

2. Profits were shs.114, 000.  Office expenses and office salaries provided for as in the financial books

(i) Opening Stocks:     

Raw Materials            26,000

Work in Progress       21,000

Finished Goods          23,000

(ii) Closing Stocks:  Raw Materials          30,000

                             Work in Progress      20,000

                             Finished Goods         24,000

Required 

Prepare a memorandum Reconciliation account.

Solution

Memorandum Reconciliation Account as:

 

 

Profits as Per Cost Books

 

114,000

Items not Debited in Cost A/Cs           

 

Items not Credited in Cost A/Cs

 

 

Stock Differences:  Opening Stocks

 

Dividends Received    

3,000

 

   Of Raw Materials               

1,000

Interest Received       

1,000

 

Loss on Sale of Plant              

1,000

Differences in Stocks

 

 

Fines                           

1,000

W.I.P. (Opening Stocks)

2,000

 

Interest on Mortgage

2,000

 Opening Finished Goods

3,000

 

Selling Expenses         

15,000

W.I.P: Closing stocks  

1,000

 

Salesman Commission                       

18,000

 

10,000

 

Distribution Expenses            

13,000

 

 

 

Stock Differences:

 

 

 

 

Raw Materials: Closing                      

1,000

 

 

 

Finished Goods:             Closing

2,000

 

 

 

Net Profit as Per the Financial Books: 

 

70,000

 

 

 

______

 

124,000

 

 

124,000

 

Working

 

Financial A/Cs

Cost  A/Cs

Differences

Work in Progress:  Opening Stocks:

29,000

21,000

2,000

Finished Goods:  Opening Stocks:

20,000

23,000

3,000

Raw Materials:  Opening Stocks:

27,000

26,000

1,000

Closing Stocks: 

 

 

 

Work in Progress:

21,000

20,000

1,000

Finished Goods:

22,000

24,000

2,000

Raw Materials:

29,000

30,000

1,000

 


Related Discussions:- Find out the memorandum reconciliation account

Cost volume analysis, Production of a particular product costs $50 per mate...

Production of a particular product costs $50 per material, $80 per labour and variable overhead is 75% of labour cost. If the selling price per unit is $230 and fixed cost amounts

Compute the industry volume variance for each product, The next year's budg...

The next year's budget for Benny, Inc., is given below: Product 1-2 Sales $945,000-688500 Variable costs 459,900-297,000 Fixed costs 300,000-3

Cost of goods manufactured statement., These balances for a company x Ra...

These balances for a company x Raw materials $40,000 Work in process $30,000 Finished goods $60,000 for the current year the company estimated that it would work 150.000 mach

Determine the net book value, NSC Ltd. has a 31 May fiscal year-end. NSC di...

NSC Ltd. has a 31 May fiscal year-end. NSC disposed of its Information Systems Group (ISG) on 31 January 20X3. ISG had a net loss (after taxes) of $37,700,000 in 20X3, to the date

Job Order Costing, Bedovin Company manufactures office tables and chairs us...

Bedovin Company manufactures office tables and chairs using the job order cost system

Uniform costing, Uniform Costing It is a general system utilizing agre...

Uniform Costing It is a general system utilizing agreed concepts, standard and principles accounting practices adopted via different entities in the similar industry to ensure

Example of lifo, Example of LIFO, FIFO and Weighted Average Method Su...

Example of LIFO, FIFO and Weighted Average Method Suppose the following purchases were made in ABC Ltd as like: Date of purchase     Units purchased              Price/uni

Cost and budget, Frame-it Ltd is a manufacturer of metal picture frames. Th...

Frame-it Ltd is a manufacturer of metal picture frames. The firm's two product lines are designate S (small frames: 12 x18 cm) and L (large frames: 20 x 25 cm). The primary raw mat

Calculate the retained profit, Harriet Ltd is a trading company set up a nu...

Harriet Ltd is a trading company set up a number of years ago with 5,000 £1ordinary shares issued at par. In order to expand the production facilities it needs to raise a further £

What is the marginal cost, Marginal Cost (MC): The marginal cost of an a...

Marginal Cost (MC): The marginal cost of an additional unit of output is the cost of the additional inputs required to make that output. More formally, the marginal cost is the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd