Question

In: Accounting

Question 4 [unit 5: obj. 1;4] HanLue Brothers, a manufacturing company, produces the following balances from...

Question 4 [unit 5: obj. 1;4]

HanLue Brothers, a manufacturing company, produces the following balances from its books at 30th September 2017:

	$
Stocks at 1 October 2016:
Raw materials	7,450
Work-in-progress(factory cost)	5,330
Finished goods(transfer value)	12,110
Purchases of raw materials	128,740
Purchases returns	310
Direct expenses	3,280
Return inwards	1,215
Carriage inwards	1,055
Rates	5,250
Light, heat and power	3,270
Direct Wages	187,240
Indirect Wages	14,320
Telephone	890
Factory repairs	2,215
Insurances	1,420
Factory salaries	38,000
Office salaries	24,000
Sales salaries	27,435
Plant & machinery ( at cost)	160,000
Provision for depreciation of plant & machinery at 1 October 2016	64,000
Bad debts (written off)	325
Bank	3,115
Sales	721,560
Furniture & equipment (at cost)
-Factory	42,000
-Office	48,000
Provision for depreciation of furniture & equipment at 1 October 2016
-Factory	8,400
-Office	9,600
Office machine at cost	12,000
Provision for depreciation on office machine	3,000
Carriage outwards	205
Discount allowed	950
Land	500,000
Capital	288,045
Debtors	18,526
Creditors	11,756
Bank Loan	175,000

Additional information:

(1) Closing stocks at 30 September 2017 are as follows:

	$
Raw materials	6,325
Work-in-progress(factory cost)	6,105
Finished goods(transfer value)	15,225

(2) Prepayments at 30 September 2017:

	$
Rates	450
Insurance	220

(3) Accruals at 30 September 2017:

	$
Direct wages	1,220
Telephone	70
Light, heat and power	210

(4) At 30 September 2017, depreciation is to be provided as follows:

	Per year on cost
Plant and machinery	20%
Furniture and equipment	10%

(5) Expenses are to be apportioned to the factory as follows:

	$
Rates	4 / 5
Insurances	3 / 4
Telephone	2 / 3
Light, heat and power	3 / 4

(6) It is the policy of the company to transfer goods manufactured to the warehouse at factory cost plus 15%

Required:

Prepare in vertical format, Manufacturing and Trading and Profit and Loss Accounts HanLue Brothers for the year ended 30 September 2017 and a Balance Sheet as at that date. Show all workings.

Explain two (2) differences between accounting for a manufacturing and retailing entity.

(total 30 marks)

Expert Solution

Please give positive rating, your feedback is valuable to me.

In case, any problem please leave a comment.

ekkarill92 answered 1 year ago

HanLue Brothers, a manufacturing company, produces the following balances from its books at 30th September 2017:...

HanLue Brothers, a manufacturing company, produces the following balances from its books at 30th September 2017: $ Stocks at 1 October 2016: Raw materials 7,450 Work-in-progress(factory cost) 5,330 Finished goods(transfer value) 12,110 Purchases of raw materials 128,740 Purchases returns 310 Direct expenses 3,280 Return inwards 1,215 Carriage inwards 1,055 Rates 5,250 Light, heat and power 3,270 Direct Wages 187,240 Indirect Wages 14,320 Telephone 890 Factory repairs 2,215 Insurances 1,420 Factory salaries 38,000 Office salaries 24,000 Sales salaries 27,435 Plant &...

Exercise 2-40 Prepare Statements for a Manufacturing Company (LO 2-2, 4) The following balances are from...

Exercise 2-40 Prepare Statements for a Manufacturing Company (LO 2-2, 4) The following balances are from the accounts of Crabtree Machining Company: January 1 (Beginning) December 31 (Ending) Direct materials inventory $ 97,300 $ 109,400 Work-in-process inventory 108,400 107,200 Finished goods inventory 43,000 46,300 Direct materials purchased during the year amount to $513,200, and the cost of goods sold for the year was $1,875,000. Required: Prepare a cost of goods sold statement.

QUESTION 5. Account balances from the ledger of Summer Company on December 31, 2018, are as...

QUESTION 5. Account balances from the ledger of Summer Company on December 31, 2018, are as follows: Accounts Payable .................................................................................. $ 23,000 Accounts Receivable ............................................................................. 38,000 Accumulated Depreciation--Equipment ................................................. 64,000 Allowance for Doubtful Accounts ........................................................... 2,000 Patent .................................................................................................... 8,400 Capital Stock, $10 par ........................................................................... 100,000 Cash ...................................................................................................... 60,260 Inventory ................................................................................................ 105,000 Sales Supplies Inventory ....................................................................... 900 Interest Expense .................................................................................... 6,600 Inventory, December 31, 2017 .............................................................. 104,850 Contributed Capital in Excess of Par Value ........................................... 15,000 Long-Term Note Receivable, 14% ............................................................

Question 1: The following balances were taken from Mazoon Company 31.12.2019 &nbsp

Question 1: The following balances were taken from Mazoon Company 31.12.2019 Account's name R.O Sales 7 500 Sales Returns 750 Purchases Returns 1 000 Opening Stock 1 500 Rent Revenues 500 Interest Expenses 600 Salaries 900 Electricity Expenses 200 Phone Expenses 300 Depreciation Expenses 500 Interest Revenues 750 Cash 5 000 Creditors = Accounts Payable 1 500 Buildings 3 500 Cars 4 000 Overdraft 1 250 Debtors = Accounts receivable 500 Bank 10 000 Furniture 3 000 Land 1 750...

Question 1.The following balances were taken from Chico Company as at 31.12.2018 &

Question 1.The following balances were taken from Chico Company as at 31.12.2018 [30 Marks] Name of accounts Cash 200 000 Creditors = Accounts Payable 100 000 Buildings 10 000 Cars 30 000 Overdraft 50 000 Debtors = Accounts receivable 10 000 Bank 400 000 Furniture 15 000 Land 10 000 Loans 200 000 Marketable Securities 10 000 Machines 15 000 Purchases 80 000 Sales 200 000 Sales Returns 10 000 Purchases Returns 20 000 Opening Stock 15 000 Rent expenses...

Question 3: In your company, there is a manufacturing process that produces a part that inspectors...

Question 3: In your company, there is a manufacturing process that produces a part that inspectors grade as as either 1) Excellent, 2) Fair, or 3) Poor. The probabilities that a part is graded as excellent, fair, and poor are 1/8, 3/8, and 1/2; respectively. A new inspector, Steve, has just started working for your company. After performing three inspections, what is the probability that Steve grades an excellent part before a poor part?

Monroe Manufacturing produces and sells a product with a price of $100/unit. The following data has...

Monroe Manufacturing produces and sells a product with a price of $100/unit. The following data has been prepared for its estimated upper and lower levels of activity. Production Category Lower Limit Upper Limit Units of Production 4,000 units 6,000 units Direct Materials $60,000 $90,000 Direct labour $80,000 $120,000 Manufacturing Overhead: Indirect materials $25,000 $37,500 Indirect labour $40,000 $50,000 Depreciation $20,000 $20,000 Selling and Admin. Expenses: Sales salaries $50,000 $65,000 Office salaries $30,000 $30,000 Advertising $45,000 $45,000 Other $15,000 $20,000 Totals...

Data 4 Selling price per unit $374 5 Manufacturing costs: 6 Variable per unit produced: 7...

Data 4 Selling price per unit $374 5 Manufacturing costs: 6 Variable per unit produced: 7 Direct materials $152 8 Direct labor $58 9 Variable manufacturing overhead $38 10 Fixed manufacturing overhead per year $166,400 11 Selling and administrative expenses: 12 Variable per unit sold $4 13 Fixed per year $98,000 14 15 Year 1 Year 2 16 Units in beginning inventory 0 17 Units produced during the year 3,200 2,600 18 Units sold during the year 2,800 2,800 19...

4. A manufacturing plant produces memory chips to be used in cardiac pacemakers.The manufacturing process produces...

4. A manufacturing plant produces memory chips to be used in cardiac pacemakers.The manufacturing process produces a mix of “good” chips and “bad” chips. The lifetime of good chips follows an exponential law with a rate of failure ??, that is: P[chip still functioning after time ?] = ?−?t The lifetime of bad chips also follows an exponential law, but with a much faster failure rate of 500*?. a. Suppose the fraction of bad chips in a typical batch is?.What...

Which of the following are manufacturing cost for a company that produces sweaters？ A. The knitting...

Which of the following are manufacturing cost for a company that produces sweaters？ A. The knitting wool that use to sew the tag on it. B. The supervisor review the finished sweaters in the factory. C. Depreciation of equipment used by the human resources department. D. All of them are not manufacturing costs. Which of the following are considered as product cost? A.equipment repair fee B.Utilities C.Supplies used by the human resources department D.Sales manager's salary E. finished goods warehouse...