Required: Using Excel, answer the questions below. Use one tab per question and also include any written response within Excel. Note that marks are also allocated for professional presentation and the use of formulas within Excel.
QUESTION 1
Toorak Ltd produces components for wind turbines. The following data reflect activity for the year 2016:
Costs incurred:
Purchases of direct materials (net) on credit $124 000
Direct manufacturing labour cost 60 000
Indirect labour 54 500
Depreciation, factory equipment 30 000
Depreciation, office equipment 7 000
Maintenance labour, factory equipment 20 000
Miscellaneous factory overhead 9 500
Rent, factory building 70 000
Advertising expense 90 000
Sales commissions 30 000
Inventories:
1 January 2016 31 December 2016
Direct materials $ 9 000 $ 11 000
Work in process 6 000 21 000
Finished goods 69 000 24 000
Toorak Ltd allocates overhead to work in process at a rate of $3.50 per direct manufacturing labour dollar.
REQUIRED: Create journal entries for these transactions, including dealing with over or under allocated overhead.
QUESTION 2
Timber Garden Sheds Pty Ltd incurred the following costs for job number SH400, which consisted of 500 flat pack sheds for sale to a hardware store.
Direct material:
1 December Requisition no. 520: 900 metres of timber @ 8.50 per metre
16 December Requisition no. 101: 600 metres of metal panels @ $4.40 per metre
Direct labour:
16 December Timesheet no. 72: 500 hours@$24 per hour
Manufacturing overhead:
Applied on the basis of direct labour hours @$12 per hour
Additional information:
Job SH400 was completed on 16 December.
REQUIRED: Prepare a job cost sheet including dates & requisition / timesheet numbers and record the information given above and also a cost summary for job SH400.