chapter 4: the cost accounting cycle chapter review solutions · management accounting in australia...

Management Accounting in Australia - Solutions

42

Chapter 4: The Cost Accounting Cycle

Chapter Review Solutions

1.

Raw Material Control 66,000

Bank 66,000

Work in Progress 64,000


Factory O/H Control 2,000




Labour Control 38,000


Accrued Payroll 38,000


Bank 38,000


Accum Depreciation Plant 1,400


Various Accounts 2,600

Factory O/H Applied 16,000




Finished Goods 100,000


Accounts Receivable 150,000

Sales 150,000

Cost of Goods Sold 100,000



43

2. Raw Material Control 40,000

Accounts Payable 40,000











Bank 35,000


Bank 2,100


Various Accounts 1,600

Factory O/H Control 300

Prepaid Insurance 300








Sales 103,500




44

3.


A/c Payable 20,000








PAYG Tax Withheld 3,000



Bank 16,000


Bank ( Rent Paid ) 8,500


Accumulated Depreciation Plant 7,500








Sales 29,000




45

3. ( b ) Raw Material Control

Opening Balance 0 Work in Progress 15,000Accounts Payable 20,000 Factory Overhead Control 2,000 Closing Balance 3,000 20,000 20,000

Labour Control Accrued Payroll 19,000 Opening Balance 0 Work in Progress 17,000 Factory Overhead Cost 2,000 19,000 19,000

Accrued Payroll PAYG Tax Payable 3,000 Labour Control 19,000Bank 16,000 19,000 19,000

Factory Overhead Control Raw Material Control 2,000 Factory Overhead Applied 20,000Labour Control 2,000 Bank 8,500 Accum. Depreciation 7,500 20,000 20,000

Factory Overhead Applied Factory Overhead Cost 20,000 Work in Progress 20,000 20,000 20,000

Work in Progress Opening Balance 0 Finished Goods 32,000Raw Material Control 15,000 Labour Control 17,000 Factory Overhead Applied 20,000 Closing Balance 20,000 52,000 52,000

Finished Goods Opening Balance 0 Cost of Goods Sold 22,000Work in Progress 32,000 Closing Balance 10,000 32,000 32,000


46

4. Raw Material Control 60,000 Accounts Payable 60,000Work in Progress 44,000 Factory O/H Control 16,000 Raw Material Control 60,000Work in Progress 26,000 Factory O/H Control 4,000 Labour Control 30,000Labour Control 30,000 Taxation Withheld 10,000 Accrued Payroll 20,000Accrued Payroll 20,000 Bank 20,000Factory O/H Control 10,000 Accum. Depreciation 10,000Factory O/H Applied 30,000 Factory O/H Control 30,000Work in Progress 30,000 Factory O/H Applied 30,000Finished Goods 90,000 Work in Progress 90,000Cost of Goods Sold 50,000 Finished Goods 50,000Accounts Receivable 75,000 Sales 75,000


47

5. Raw Material Control 50,000 Accounts Payable 50,000Work in Progress 32,000 Factory O/H Control 10,000 Raw Material Control 42,000Accounts Payable 2,000 Raw Material Control 2,000Work in Progress 40,000 Factory O/H Control 10,000 Labour Control 50,000Labour Control 50,000 Taxation Withheld 15,000 Accrued Payroll 35,000Accrued Payroll 35,000 Bank 35,000Factory O/H Control 20,000 Accum. Depreciation 20,000Factory O/H Applied 40,000 Factory O/H Control 40,000Work in Progress 40,000 Factory O/H Applied 40,000Finished Goods 80,000 Work in Progress 80,000Cost of Goods Sold 80,000 Finished Goods 80,000Accounts Receivable 160,000 Sales 160,000


48

6. General Journal Raw Material Control 85,500 Accounts Payable 85,500Work in Progress 84,000 Raw Material Control 84,000Factory O/H Control 1,500 Raw Material Control 1,500Work in Progress 70,000 Factory O/H Control 20,000 Labour Control 90,000Labour Control 90,000 Taxation Withheld 18,000 Accrued Payroll 72,000Accrued Payroll 72,000 Bank 72,000Factory O/H Control 4,500 Various Accounts 4,500Factory O/H Applied 26,000 Factory O/H Control 26,000Work in Progress 26,000 Factory O/H Applied 26,000Finished Goods 130,000 Work in Progress 130,000Accounts Receivable 195,000 Sales 195,000

Work in Progress

Opening Balance - Finished Goods 130,000Raw Material Control 84,000 Labour Control 70,000 Factory Overhead Applied 26,000 Closing Balance 60,000 180,000 180,000

Factory Overhead Control Raw Material Control 1,500 Factory Overhead Applied 26,000Labour Control 20,000 General Ledger Control 4,500 26,000 26,000

Factory Overhead Applied Factory Overhead Applied 26,000 Work in Progress 16,000 26,000 26,000


49

7. General Journal Raw Material Control 20,000 Accounts Payable 20,000

Work in Progress 17,000 Raw Material Control 17,000

Work in Progress 54,000 Factory Overhead Control 6,000 Labour Control 60,000

Labour Control 60,000 Taxation Withheld 12,000 Accrued Payroll 48,000

Accrued Payroll 48,000 Bank 48,000

Raw Material Control 900 Work in Progress 900

Accounts Payable 900 Raw Material Control 900

Factory O/H Control 6,000 Bank 6,000

Cost of Goods Sold 60,000 Finished Goods 60,000

Accounts Receivable 100,000 Sales 100,000

Factory Overhead Control 9,000 Bank 9,000

Factory Overhead Control 3,300 Accumulated Depreciation 3,300

Work in Progress 2,200 Factory O/H Applied 2,200

Finished Goods 12,000 Work in Progress 12,000




50


Work in Progress 24,000 Raw Material Control 24,000

Factory O/H Control 16,000 Raw Material Control 16,000

Work in Progress 26,000 Factory O/H Control 4,000 Labour Control 30,000



Factory O/H Control 5,000 Accum. Depreciation 5,000

Factory O/H Applied 25,000 Factory O/H Control 25,000





Raw Material Control

Opening Balance 8,000 Work in Progress 24,000 Accounts Payable 44,000 Factory Overhead Control 16,000 Closing Balance 12,000 52,000 52,000

Factory Overhead Control Raw Material Control 16,000 Factory Overhead Applied 25,000 Labour Control 4,000 Accumulated Depreciation 5,000 25,000 25,000

Factory Overhead Applied

Factory Overhead Control 25,000 Work In Progress 25,000 25,000 25,000

Work in Progress Opening Balance - Finished Goods 70,000 Raw Material Control 24,000 Labour Control 26,000 Factory Overhead Applied 25,000 Closing Balance 5,000 75,000 75,000

Finished Goods Opening Balance - Cost of Goods Sold 62,500 Finished Goods 70,000 Closing Balance 7,500 70,000 70,000


51


Work in Progress 50,000 Factory O/H Control 7,000 Raw Material Control 57,000

Accounts Payable 2,000 Raw Material Control 2,000

Work in Progress 25,000 Factory O/H Control 3,000 Labour Control 28,000



Factory O/H Control 15,000 Accum. Depreciation 15,000

Factory O/H Applied 25,000 Factory O/H Control 25,000





Raw Material Control Opening Balance 16,000 Work in Progress 50,000 Accounts Payable 44,000 Factory Overhead Control 7,000 Accounts Payable 2,000 Closing Balance 1,000 60,000 60,000

Factory Overhead Control Raw Material Control 7,000 Factory Overhead Applied 25,000 Labour Control 3,000 Accumulated Depreciation 15,000 25,000 25,000

Factory Overhead Applied

Factory Overhead Control 25,000 Work In Progress 25,000 25,000 25,000

Work in Progress Opening Balance 10,000 Finished Goods 100,000 Raw Material Control 50,000 Labour Control 25,000 Factory Overhead Applied 25,000 Closing Balance 10,000 110,000 110,000

Finished Goods Opening Balance 30,000 Cost of Goods Sold 130,000 Finished Goods 100,000 Closing Balance 0 130,000 130,000


52

10. Debit Credit Raw Material Control 12,500 Accounts Payable 12,500 Work in Progress 14,900 Factory Overhead Control 2,800 Raw Material Control 17,700 Work in Progress 54,000 Factory Overhead Control 6,000 Labour Control 60,000 Labour Control 60,000 Tax Withheld 12,000 Accrued Payroll 48,000 Accrued Payroll 48,000 Bank 48,000 Factory Overhead Control 18,200 Accum Depreciation 3,200 Bank 15,000 Factory Overhead Applied 27,000 Factory Overhead Control 27,000 Work in Progress 27,000 Factory Overhead Applied 27,000 Finished Goods 88,000 Work in Progress 88,000 Cost of Goods Sold 80,000 Finished Goods 80,000 Accounts Receivable 140,000 Sales 140,000 Selling Expenses 28,500 Administration Expenses 16,500 Accounts Payable 45,000

Work in Progress

Opening Balance 4,600 Finished Goods 88,000Raw Material Control 14,900Labour Control 54,000Factory Overhead Applied 27,000 Closing Balance 12,500 100,500 100,500

Finished Goods

Opening Balance 7,000 Cost of Goods Sold 80,000Work in Progress 88,000 Closing Balance 15,000 95,000 95,000

Manufacturing Statement Cost of Goods Sold Direct Material 14,900 Opening Balance Finished Goods 7,000Direct Labour 54,000 Cost of Goods Manufactured 88,000Factory Overhead Applied 27,000 95,000 95,900 Closing balance Finished Goods - 15,000Plus Opening balance Work in Progress 4,600 Cost of Goods Sold 80,000 100,500 Less Closing balance 12,500 Income Statement Cost of Goods Manufactured 88,000 Sales 140,000 Less Cost of Goods Sold - 80,000 Equals Gross Profit 60,000 Less Expenses 45,000 Net Profit 15,000


53

11. Debit Credit Raw Material Control 25,000 Accounts Payable 25,000 Accounts Payable 5,000 Raw Material Control 5,000 Work in Progress 20,000 Factory Overhead Control 4,000 Raw Material Control 24,000 Work in Progress 35,000 Factory Overhead Control 11,000 Labour Control 46,000 Labour Control 46,000 Tax Withheld 16,100 Accrued Payroll 29,900 Accrued Payroll 29,900 Bank 29,900 Factory Overhead Control 7,500 Accumulated Depreciation 3,000 Prepaid Insurance 500 Bank 4,000 Factory Overhead Applied 22,500 Actual Factory Overhead Control 22,500 Work in Progress 21,000 Applied Factory Overhead Applied 21,000 Cost of Goods Sold 1,500 Factory Overhead Applied 1,500 Finished Goods 80,000 Work in Progress 80,000 Cost of Goods Sold 84,000 Finished Goods 84,000 Accounts Receivable 151,200 Sales 151,200 Selling Expenses 18,000 Administrative Expenses 19,200 Accounts Payable 37,200

Manufacturing Statement Cost of Goods Sold

Direct Material 20,000 Opening Balance Finished Goods 10,000Direct Labour 35,000 Cost of Goods Manufactured 80,000Factory Overhead Applied 21,000 90,000 76,000 Opening Balance Finished Goods - 6,000Plus Opening balance Work in Progress 14,000 Cost of Goods Sold 84,000 90,000 plus Underapplied Overhead 1,500Less Closing balance 10,000 Cost of Goods Sold 85,500Cost of Goods Manufactured 80,000

Factory Overhead Control Income Statement

Raw M Control 4,000 F O A 22,500 Sales 151,200Labour Costs 11,000 Cost of Goods Sold 85,500Other 7,500 Equals Gross Profit 65,700 22,500 22,500 Less Expenses 37,200 Net Profit 28,500

Factory Overhead Applied F O C 22,500 W I P 21,000 C O G S 1,500 22,500 22,500


54

12. Debit Credit Raw Material Control 35,000 Accounts Payable 35,000Work in Progress 35,000 Factory Overhead Control 2,500 Raw Material Control 37,500Raw Material Control 1,800 Work in Progress 1,200 Factory Overhead Control 600Work in Progress 40,600 Factory Overhead Control 11,000 Labour Control 51,600Labour Control 51,600 Accrued Payroll 51,600Accrued Payroll 51,600 Bank 51,600Factory Overhead Applied 9,400 Accumulated Depreciation 7,800 Bank 1,600Factory Overhead Applied 22,300 Factory Overhead Control 22,300 Actual Work in Progress 24,360 Factory Overhead Applied 24,360 Applied Factory Overhead Applied 2,060 Cost of Goods Sold 2,060Finished Goods 90,000 Work in Progress 90,000Cost of Goods Sold 80,000 Finished Goods 80,000Accounts Receivable 120,000 Sales 120,000Selling & Admin Exp. 12,060 Bank / Accounts Payable 12,060

Manufacturing Statement Cost of Goods Sold Direct Material 35,000 Opening balance Finished Goods 9,500Direct Labour 40,600 Cost of Goods Manufactured 90,000Factory Overhead Applied 24,360 99,500 99,960 Closing balance Finished Goods - 19,500Plus opening balance Work in Progress 9,700 Cost of Goods Sold 80,000 109,660 Less Overapplied Overhead 2,060Less Closing balance 18,460 Cost of Goods Sold 77,940 91,200Less Returns of Raw Material 1,200Cost of Goods Manufactured 90,000 Income Statement Sales 120,000 Less Cost of Goods Sold - 77,940 Equals Gross Profit 42,060 Less Expenses - 12,060 Net Profit 30,000


55

13. Raw Material Control

Opening balance 14,000 Work in Progress 18,600 Accounts Payable 22,000 Factory Overhead Control 2,400 Closing balance 15,000 36,000 36,000

Labour Control Accrued Payroll 23,400 Work in Progress 24,000 Tax Payable 10,200 Factory Overhead Control 10,000 Union Dues 400 34,000 34,000

Work in Progress Opening balance 15,200 Finished Goods 60,000 Raw Material Control 18,600 Labour Control 24,000 Factory Overhead Applied 18,000 Closing balance 15,800 75,800 75,800

Finished Goods Opening balance 15,000 Cost of Goods Sold 50,000 Work in Progress 60,000 Closing balance 25,000 75,000 75,000 Total Manufacturing Costs $ 60,600 Less Raw Material Costs - 18,600 Equals Conversion Costs $ 42,000 Conversion Costs $ 42,000 = $ 24,000 ( L.C. ) 1.75

Factory Overhead Control Raw Material Control 2,400 Factory Overhead Applied 18,000 Labour Control 10,000 Account Depreciation 2,200 Prepaid Insurance 400 Bank 3,000 18,000 18,000

Factory Overhead Applied Factory Overhead Control 18,000 Work in Progress 18,000 18,000 18,000

Manufacturing Statement Cost of Goods Sold Direct Material $ 18,600 O/Bal Finished Goods $ 15,000Direct Labour 24,000 Cost of Goods Manufactured 60,000Factory Overhead Applied 18,000 $ 75,000 $ 60,600 C/Bal Finished Goods -25,000 Plus O/Bal Work in Progress. 15,200 Cost of Goods Sold $ 50,000 75,800 Less C/Bal 15,800 Statement of Financial Performance Cost of Goods Manufactured $ 60,000 Sales $ 100,000 Less Cost of Goods Sold -50,000 Equals Gross Profit $ 50,000 Less Expenses -25,000 Net Profit $ 25,000


56

14. Raw Material Control

Opening Balance 40,000 Work in Progress 162,000Accounts Payable 170,000 Factory Overhead Control 18,000 Closing Balance 30,000 210,000 210,000

Work in ProgressOpening Balance 50,000 Finished Goods 410,000Raw Material Control 162,000 Labour Control 192,000 Factory Overhead Applied 96,000 Closing Balance 90,000 500,000 500,000

Finished GoodsOpening Balance 40,000 Cost of Goods Sold 400,000Work in Progress 410,000 Closing Balance 50,000 450,000 450,000

15. ( a ) Debit CreditRaw Material Control 55,000 Accounts Payable 55,000Work in Progress 68,000 Factory Overhead Control 5,600 Raw Material Control 73,600Work in Progress 85,000 Factory Overhead Control 10,500 Labour Control 95,500Labour Control 95,500 Tax Withheld 20,000 Accrued Payroll 75,500Accrued Payroll 75,500 Bank 75,500Factory Overhead Control 14,000 Accounts Payable 14,000Bank 310,000 Accounts Receivable 310,000Accounts Payable 109,000 Bank 109,000Factory Overhead Control 1,600 Accum. Depn. – Plant 1,600Factory Overhead Applied 31,700 Factory Overhead Control 31,700


57

Work in Progress 37,000 Factory Overhead Applied 37,000Finished Goods 215,000 Work in Progress 215,000Cost of Goods Sold 243,000 Finished Goods 243,000Accounts Receivable 364,500 Sales 364,500Factory Overhead Applied 5,300 Cost of Goods Sold 5,300 ( b ) Raw Material Control Balance b/d 44,000 Work in Progress 68,000 Accounts Payable 55,000 Factory Overhead Control 5,600 Balance c/d 25,400 99,000 99,000

Labour Control Accrued Payroll 95,500 Work in Progress 85,000 Factory Overhead Control 10,500 95,500 95,500

Accrued Payroll Bank 75,500 Balance b/d 6,600 PAYG Tax 20,000 Labour Control 95,500 Balance c/d 6,600 102,100 102,100

Factory Overhead Control Raw Material Control 5,600 Factory overhead applied 31,700 Labour Control 10,500 Accounts Payable 14,000 Accum. Depn. Plant 1,600 31,700 31,700

Factory Overhead Applied Factory Overhead Control 31,700 Work in Progress 37,000 Cost of Goods Sold 5,300 37,000 37,000

Work In Progress Balance b/d 85,000 Finished Goods 215,000 Raw Material Control 68,000 Labour Control 85,000 Factory Overhead Applied 37,000 Balance c/d 60,000 275,000 275,000

Finished Goods Balance b/d 78,000 Cost of Goods Sold 243,000 Work in Progress 215,000 Balance c/d 50,000 293,000 293,000


58

Accounts Payable

Bank 109,000 Balance b/d 65,400 Balance c/d 25,400 Raw Material Control 55,000 Factory Overhead Control 14,000 134,400 134,400

Sales Accounts Receivable 364,500

Cost Of Goods Sold Finished Goods 243,000 Factory Overhead Applied 5,300 Balance c/d 237,700 243,000 243,000

Accounts Receivable Balance b/d 32,000 Bank 310,000 Sales 364,500 Balance c/d 86,500 396,500 396,500

Accumulated Depreciation - Plant Balance b/d 92,000 Factory Overhead Control 1,600 93,600

Bank Balance b/d 15,000 Accrued Payroll + PAYE Tax 95,500 Accounts Receivable 310,000 Accounts Payable 109,000 Balance c/d 120,500 325,000 325,000

Plant & Machinery Balance b/d 192,000

Paid Up Capital Balance b/d 220,000

Retained Earnings Balance b/d 62,000

Trial Balance Debit CreditRaw Material Control 25,400 Work in Progress 60,000 Finished Goods 50,000 Accounts Receivable 86,500 Bank 120,500 Plant 192,000 Accounts Payable 25,400Accrued Payroll 6,600Accum. Depreciation 93,600Retained Earnings 62,000Paid Up Capital 220,000Sales 364,500Cost of Goods Sold 237,700 772,100 772,100

chapter 4: the cost accounting cycle chapter review solutions · management accounting in australia...

Documents