Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

The Harvest Manufacturing Company owns a factory that manufactures waterproof footwear. The given is a summary of the transaction of the company throughout the financial year ending 31 May 2008.

The value of opening stocks of raw materials:              

                    Rs.
  Rubber      16225
  Linings       2950  
  Glue            325

Purchase of raw materials:
                    Rs.
  Rubber    162120
  Linings      14025  
  Glue            800

Factory expenses:

a) Wages of production workers, 6,300 man hours at Rs. 3 per man hour.

b) Hire of special moulds (a direct expense), Rs. 1,500.

c) Rent and rates Rs. 14, 501 (three seventeenths of the total is for an office building).

d) Non productive labor, Rs. 16, 480.

e) Light, Heat and Power, Rs. 18, 500 (This comprises a payment of Rs. 700 that relates to the following year.)

f) Depreciation is computed at Rs. 2.50 per machine-hour. (Records show that 6 machines have been used for 6 hrs per day for two hundred and fifty days throughout the year.)

g) Sundry factory expenses, Rs. 9, 400.

At 31 May 2008 raw materials were:
                     Rs.
Rubber      30880
Linings       3135  
Glue            150

Work in progress was valued at Rs. 24, 500 at the beginning of the year and Rs. 35, 302 at the end of the year.

47, 500 pairs of boots were sold in the year for a total of Rs. 750, 000. The opening stock of finished boots was valued at Rs. 40, 000 (12, 000 pairs) and the closing stock at Rs. 90, 000 (27, 000 pairs).

Required:

problem 1:

a) A manufacturing account and trading account for the year ending 31 May 2008.

b) A computation of the production cost of one pair of boots.

problem 2: A footwear retailer has offered the Company a special order for 20, 000 pairs. Illustrate two matters which should be considered before deciding whether to accept the order.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96928

Have any Question? 


Related Questions in Financial Accounting

Assignmenti a comparing three depreciation methods obj

Assignment I. A Comparing three depreciation methods ObJ. 2 Waldum Company purchased packaging equipment on January 5, 2012, for $135,000. The equipment was expected to have a useful life of three years, or 18,000 operat ...

Which survey method mail telephone or personal interview

Which survey method (mail, telephone, or personal interview) would you use for the following situations? Explain your choice. Situation 1 Administration of a questionnaire by a local auto dealership that wishes to find o ...

Financial accounting assignmentcase study 1 - activity

FINANCIAL ACCOUNTING ASSIGNMENT Case Study 1 - Activity Classification (Statement of Cash Flows) You are provided with the following transactions that took place during a recent fiscal year. Transaction Statement of Cash ...

Dickens corps fiscal year ends on december 31 it started

Dickens Corp.'s fiscal year ends on December 31. It started fiscal year 20X6 with $4,800 retained earnings. Below is its financial information as of December 31, 20X6. Cash $3,810 Depreciation expense  $1,005 Accumulated ...

Assignmentconsider the listing at 4815 catoctin san diego

Assignment Consider the listing at 4815 Catoctin San Diego, CA 92115 Price $475,000 Bob Betty Homebuyers want to make an offer on this property at the list price. Bob earns $48,000 per year and Betty earns $54,000 per ye ...

Assignmentbullnote some of the assessments in this course

Assignment • Note: Some of the assessments in this course build upon each other, so you are strongly encouraged to complete them in the order in which they are presented. For this assessment, you may use Word or Excel to ...

Mr great kid an experienced budget analyst at toysforall

Mr. "Great" Kid, an experienced budget analyst at ToysForAll Manufacturing company, has been charged with assessing the firm's financial performance during 2014 and its financial position at year end 2014. To complete th ...

Mid-atlantic container corporation1assess the current

Mid-Atlantic Container Corporation 1) Assess the current financial health and recent financial performance of the company. What strengths and/or weaknesses would you highlight to Sarah Conner? 2) What are the key driver ...

Financial accountingi abc inc was incorporated on 11512

Financial Accounting I. ABC Inc. was incorporated on 1/15/12. Their corporate charter authorized the following capital stock: Preferred Stock: 7%, par value $100 per share, 100,000 shares. Common Stock: $1 par value, 500 ...

Paperwrite a 750- to 1050-word paper in which

PAPER Write a 750- to 1,050-word paper in which you: • Explain the principles of internal control. • Explain the use of cash and internal controls to prevent fraud. • Explain why corporations invest in stocks and debt se ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro