Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Surplus Stores Ltd is a company which frequently buy goods in large quantities and makes alterations to the goods before selling. At 31 Dec 2000 the following items were included in stock:
(1) 8000 pairs of rubber boots. These had cost $6.50 per pair. In order to make them saleable Surplus Stores Ltd will buy linings at a cost of $1.20 per pair. These linings have not yet been delivered or paid for. The labour cost of fitting linings to boots will total $500. The expected selling price is $9.95 per pair.
(2) 100 pairs of fire damaged shoes. These cost $3000 in total. 200 pairs are so badly damaged that they will be destroyed. The remaining 800 pairs will need cleaning and polishing at a total cost of $960. This work has not yet been done. It is expected that the shoes will sell for $7.49 per pair.
(3) 40 large tents which were purchased for $150 each. After inspection the company estimated that repairs to the tents will cost a total of $250. These repairs will take 2 months and the company estimates the storage costs will amount to $1 per tent per month. The company is expecting to sell the tents for $180 each but expects to give a trade discount of 5% on half the tents and pay carriage of $4 per tent on 40% of the tents.
(4) 500 jackets in a now unfashionable style. Surplus Stores Ltd paid $8 for each jacket but is offering to sell them at $10 each. The company expects to sell 200 at this price with the remainder being sold off at $9 each. For all jacket sales they will have to pay packing and carriage of $1.50 per jacket.
(5) 20 cameras which were bought for a total cost of $1240. The company has decided to include a case, costing $2.50 and additional equipment, costing $6 with each camera which will then retail at $89. The cases and additional equipment have yet to be acquired.
REQUIRED:
Calculate the total and the total net realizable value for each of the above items at 31 Dec 2000.
Methods of Allocating Service Costs Direct Method The service costs are merely allocated to the production department according to the usage of the services given. St
Rayya Co. purchases and installs a machine on January 1, 2013, at a total cost of $105,000. Straight-line depreciation is taken each year for four years assuming a seven-year life
Requirement for additional Funds A business would require additional capital for two purposes: 1. Financing additional fixed assets, and
1. Single product or single mix of products 2. Variable cost, fixed cost and selling price are constant 3. The level of production will equal the level of sales Example:
discuss stages of accounting for costs
Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor h
Question The statements of comprehensive income for three entities for the year ended 30 September 2009 are presented below: SOT PB UV
The controller for U.S. Route 66 Truck Parts is comparing traditional overhead allocationwith ABC. After studying both approaches, the controller prepared the following list of fea
concepts of cost
the annual overhead costs for abc ltd which has 3 production centeres and 2 service centers are as follows. indirect wages & supervision X 2million Y 2million 3 production departme
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd