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Kenos Pte Ltd manufactures all types of custom-made furniture. It uses a job-costing system and applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totalled $2,400,000. It has a maximum capacity of 320,000 machine hours. However, it is budgeted to be able to use 75% of this capacity during this period. On 31 July, Kenos Pte Ltd has the following balances: Work in process inventory -Job 123 -Job 124 Raw materials inventory $13,360 Finished inventory -Job 122 $23,000 In August, the following occurred: $18,000 $8,620 (i)Raw materials purchased on credit (ii) Raw materials requisitions -Job number 123 -Job number 124 -Job number 125 -Indirect materials (used in production) (iii)Machine hours, direct labour hours and wages for factory employees Job number Machine hours Labour hours 123 2,400 2,320 124 880 720 125 3,900 2,860 Indirect labour 600 (iv)Other overhead incurred: (v) (vi) Required: Depreciation (machineries) Depreciation (delivery vans) - Other factory costs Salaries (production) Salaries (sales and administration) (ii) (iii) (iv) Other selling and administration costs Spoilage & reworked costs -job number 123 -job number 124 -job number 125 (a) Calculate the following: (0) $4,840 $1,020 $600 $2,480 $600 Raw materials inventory as of 31 August. Wages $24,480 $8,640 Normal spoilage amounting to $70 and abnormal spoilage of $30 were incurred Rework cost of $52 was incurred. Job number 123 and Job number 124 were completed during the month. $40,100 $5,880 (vii) Job number 122 was sold for cash at a mark-up of 30% on cost while Job number 123 was sold on credit at a price that allowed the company to earn a gross profit margin of 20%. $4,000 $400 Normal spoilage with estimated disposal selling price of $320 was incurred. Work in process as of 31 August. Finished goods inventory as of 31 August. Selling price for Job number 122 and Job 123. $10,000 $7,000 $15,600 $9,600

Kenos Pte Ltd manufactures all types of custom-made furniture. It uses a job-costing system and applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totalled $2,400,000. It has a maximum capacity of 320,000 machine hours. However, it is budgeted to be able to use 75% of this capacity during this period. On 31 July, Kenos Pte Ltd has the following balances: Work in process inventory -Job 123 -Job 124 Raw materials inventory $13,360 Finished inventory -Job 122 $23,000 In August, the following occurred: $18,000 $8,620 (i)Raw materials purchased on credit (ii) Raw materials requisitions -Job number 123 -Job number 124 -Job number 125 -Indirect materials (used in production) (iii)Machine hours, direct labour hours and wages for factory employees Job number Machine hours Labour hours 123 2,400 2,320 124 880 720 125 3,900 2,860 Indirect labour 600 (iv)Other overhead incurred: (v) (vi) Required: Depreciation (machineries) Depreciation (delivery vans) - Other factory costs Salaries (production) Salaries (sales and administration) (ii) (iii) (iv) Other selling and administration costs Spoilage & reworked costs -job number 123 -job number 124 -job number 125 (a) Calculate the following: (0) $4,840 $1,020 $600 $2,480 $600 Raw materials inventory as of 31 August. Wages $24,480 $8,640 Normal spoilage amounting to $70 and abnormal spoilage of $30 were incurred Rework cost of $52 was incurred. Job number 123 and Job number 124 were completed during the month. $40,100 $5,880 (vii) Job number 122 was sold for cash at a mark-up of 30% on cost while Job number 123 was sold on credit at a price that allowed the company to earn a gross profit margin of 20%. $4,000 $400 Normal spoilage with estimated disposal selling price of $320 was incurred. Work in process as of 31 August. Finished goods inventory as of 31 August. Selling price for Job number 122 and Job 123. $10,000 $7,000 $15,600 $9,600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Kenos Pte Ltd manufactures all types of custom-made furniture. It uses a job-costing system and applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totalled $2,400,000. It has a maximum capacity of 320,000 machine hours. However, it is budgeted to be able to use 75% of this capacity during this period. On 31 July, Kenos Pte Ltd has the following balances: Work in process inventory -Job 123 -Job 124 Raw materials inventory $13,360 Finished inventory -Job 122 $18,000 $8,620 In August, the following occurred: (i)Raw materials purchased on credit (ii) Raw materials requisitions $23,000 (v) Job number 123 124 125 Indirect labour (vi) -Job number 123 -Job number 124 -Job number 125 -Indirect materials (used in production) (iii)Machine hours, direct labour hours and wages for factory employees (iv)Other overhead incurred: Required: Depreciation (machineries) Depreciation (delivery vans) Machine hours Labour hours 2,400 2,320 880 720 3,900 2,860 600 Salaries (production) Salaries (sales and administration) Other factory costs Other selling and administration costs Spoilage & reworked costs -job number 123 -job number 124 $4,840 -job number 125 $1,020 $600 $2,480 $600 (a) Calculate the following: (1) (ii) (iii) (iv) Wages $24,480 $8,640 $40,100 $5,880 $4,000 $400 $10,000 $7,000 $15,600 $9,600 Normal spoilage with estimated disposal selling price of $320 was incurred. Raw materials inventory as of 31 August. Work in process as of 31 August. Finished goods inventory as of 31 August. Selling price for Job number 122 and Job 123. Normal spoilage amounting to $70 and abnormal spoilage of $30 were incurred Rework cost of $52 was incurred. Job number 123 and Job number 124 were completed during the month. (vii) Job number 122 was sold for cash at a mark-up of 30% on cost while Job number 123 was sold on credit at a price that allowed the company to earn a gross profit margin of 20%.
Transcribed Image Text:Kenos Pte Ltd manufactures all types of custom-made furniture. It uses a job-costing system and applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totalled $2,400,000. It has a maximum capacity of 320,000 machine hours. However, it is budgeted to be able to use 75% of this capacity during this period. On 31 July, Kenos Pte Ltd has the following balances: Work in process inventory -Job 123 -Job 124 Raw materials inventory $13,360 Finished inventory -Job 122 $18,000 $8,620 In August, the following occurred: (i)Raw materials purchased on credit (ii) Raw materials requisitions $23,000 (v) Job number 123 124 125 Indirect labour (vi) -Job number 123 -Job number 124 -Job number 125 -Indirect materials (used in production) (iii)Machine hours, direct labour hours and wages for factory employees (iv)Other overhead incurred: Required: Depreciation (machineries) Depreciation (delivery vans) Machine hours Labour hours 2,400 2,320 880 720 3,900 2,860 600 Salaries (production) Salaries (sales and administration) Other factory costs Other selling and administration costs Spoilage & reworked costs -job number 123 -job number 124 $4,840 -job number 125 $1,020 $600 $2,480 $600 (a) Calculate the following: (1) (ii) (iii) (iv) Wages $24,480 $8,640 $40,100 $5,880 $4,000 $400 $10,000 $7,000 $15,600 $9,600 Normal spoilage with estimated disposal selling price of $320 was incurred. Raw materials inventory as of 31 August. Work in process as of 31 August. Finished goods inventory as of 31 August. Selling price for Job number 122 and Job 123. Normal spoilage amounting to $70 and abnormal spoilage of $30 were incurred Rework cost of $52 was incurred. Job number 123 and Job number 124 were completed during the month. (vii) Job number 122 was sold for cash at a mark-up of 30% on cost while Job number 123 was sold on credit at a price that allowed the company to earn a gross profit margin of 20%.
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