MBL4307-MODULE OVERVIEW-2018.pdf - Adobe Reader File Edit View Document Tools Wi

Question

MBL4307-MODULE OVERVIEW-2018.pdf - Adobe Reader File Edit View Document Tools Window Help Question 1 Spring Company has a job costing system. The following items appeared in the Work-in- Process account during February of the current year. Marks 15 February 1 Balance R20,000 Materials Placed into production Direct labour (4,000 hours) Plant-wide-Overhead-applied Cost of goods manufactured 120,000 90,000 400,000 16,000 February 28 balance Spring applies overhead to production based on direct labour hours. Job XX, the only job in process on February 28, has been charged R10,600 materials cost and has 100 labour hours of direct labour time assigned to it. REQUIRED Determine the predetermined Plant wide overhead rate for Spring Company Determine the amounts of materials, direct labour and plan wide overhead included in the February 28 work in process Determine the amount of materials placed into production during February 1.1 1.2 Activate Go to Setti dows activate Windows 1.3 O Type here to search 2404/2018

Explanation / Answer

a plant wideoverhead rate = R90,000/4,000 = R22.5 per direct labor hour b Costs assigned to Job XX: materials R10600 direct labour 100 hours*120000/4000 3000 factory overhead applied 100 hours * 22.5 2250 work in process feb 28 total 15850 c material placed in production+direct labour+factory overhead+opening inventory-closing inventory=COGS X + 120,000 +90,000 + 20,000 - 16,000 = 400,000 x-R 186000

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