the cost cycle - double entry system, Cost Accounting

entries to be entered into a ledger account for the month of July 2009 & prepare an incoem statement.

balances at 1/7/2009
Materials control $6150
Labour control (accrued wages) $2500
Factory overhead control (credit balance) $2000
Work in process $16000
Finished goods $60000

Transactions for July 2009

Purchases of materials
- on credit (inc GST $5000) - $55000
- on cash (inc GST $400) - $4400
Materials issueed
Direct materials - $46500
Indirect materials - $6000
Surplus material returned to store:
Direct materials - $1000
Indirect materials _ $150
Factory payroll paid $117750
Labour costs incurred:
Direct labour - $112500
Indirect Labour - $8500
Overhead costs paid (inc GST $7650) - $84150
Cost of completed production $245000
Credit sales (inc GST $45000) $495000
Costs og goods sold $262500

Additional information
Factory overhad is applied on the basis of 200% of the cost of direct materials used (net of returns)

factory overhead under or over applied is transferred to cost of goods sold at the end of each month

A physical stocktake at 31/07/09 revealed that the value of material on hand is $8500
Posted Date: 10/6/2012 5:10:28 AM | Location : United States

Related Discussions:- the cost cycle - double entry system, Assignment Help, Ask Question on the cost cycle - double entry system, Get Answer, Expert's Help, the cost cycle - double entry system Discussions

Write discussion on the cost cycle - double entry system
Your posts are moderated
Related Questions
Are non-profit and governments required to depreciate assets? Why or why not? Would it make sense for them to use double declining balance? Is there a difference between a non-p

Process Costing Procedure 1. The production factory is divided into a number of methods. 2. An account is maintained and opened for every process. 3. Every process accou

Classification of Labour Costs This can be classified into like: a) Indirect or Direct cost b) Variable or Fixed cost c) Non controllable and controllable cost a)

The San Carlos Company is an electronics business with eight product lines. Income data for one of the products (XT-107) for June 2011 are as follows: Revenues, 200,000 units at av

Q. Let a firm's production function be given by K 0.3 L 0.7 . (i) Sketch (without specific numbers) the shape of the long run average and long-run marginal cost curves of the fir

The sunshine tomato soup shippers produce tomato soup at three west coast canneries in Bakersfield, phoenix, and Eugene. The soup is shipped to four regional warehouses. Due to hig

Under what conditions is a market-based transfer price optimal?

The profit volume ratio of xltd. is 50% and the margin of safety is are required to calculate the net profit if sales volume is rs.100,000?

prepare a trading and profit and loss accounts for the period using marginal costing and absorption costing

1. Pardee Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at