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

Ask an Expert

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

Write your message here..

Related Questions

Explain development cost, With the introduction of computer-generated anima... With the introduction of computer-generated animated films (CGI), there has been much discussion of the impact on the movie industry. For example, illustrators need to have differe

Example of process cost report, Example of Process Cost Report Let sup... Example of Process Cost Report Let suppose that the beginning work in progress in a Company in the month of November was 1,000 units that were 100 percent complete in terms of

Calculate the total variable cost of 6, A company has developed a new produ... A company has developed a new product which it will launch next month. During the initial production phase the company expects to produce 6,400 units in batches of 100 units. The f

Materials transaction, Materials Transaction i. Purchase of Materials ... Materials Transaction i. Purchase of Materials on Credit ii. Return of Materials to Suppliers iii. Purchase of Materials in Cash. The above transactions affect both t

Accounting 561, Your organization (City Rehab) has been approached by an MC... Your organization (City Rehab) has been approached by an MCO looking for an exclusive arrangement for the rehabilitation of its hip replacement patients. The MCO is aggressively po

Marginal costing vs direct costing, MARGINAL COSTING Vs DIRECT COSTING ... MARGINAL COSTING Vs DIRECT COSTING Direct costing is the method where only direct costs are measured while calculating the cost of the product. Indirect costs are met in opposi

Multiple products, Multiple Products, Selling Costs, and Margin Management ... Multiple Products, Selling Costs, and Margin Management Selling charge are oftentimes variable. For instance, a salesperson can be paid a designated percentage of entire sales

Comparison between marginal and absorption costing, Comparison between Marg... Comparison between Marginal Costing and Absorption Costing There are accountants who favour all costing method. Arguments in favour about absorption costing are specified a

Group bonus plan, Group Bonus Plan There are specific operations or j... Group Bonus Plan There are specific operations or jobs that require to be done collectively via a group of workers, as an example of, continuous production work flows in asse

Standard costing, STANDARD COSTING STANDARD COSTING is a method, which ... STANDARD COSTING STANDARD COSTING is a method, which uses standards for costs and revenues for the idea of control by variance analysis. It can be used either through operation