Batty’s have collected the following data for one of its racquets (M), for the accounting period...
Batty’s have collected the following data for one of its racquets (M), for the accounting period ended 31st December.
| £ | ||
| Direct material cost | 9,000 | |
| Indirect material cost | 1,400 | |
| Advertising expenditure | 8,000 | |
| Packaging for delivery to customers | 1,200 | |
| Accounting salaries | 7,500 | |
| Direct production wages | 6,500 | |
| Indirect production wages | 1,900 | |
| Salesmen’s salaries | 6,300 | |
| Production manager’s salary | 1,800 | |
| Delivery vehicle running costs | 600 | |
| Sales office costs | 4,100 | |
| Delivery vehicle driver wages | 1,300 | |
| Design costs for Racquet M | 500 |
During the period ended 31st December, 100 units are produced of
which 80 are sold at a price of £650 each. There was no opening
inventory at the start of the period.
Required:
Prepare a Summary Cost Statement and an Income Statement for the period ended 31st December.
Homework Answers
| Summary Cost Statement for the period ended 31st December | |
| Particulars | £ |
| Direct material cost | 9,000 |
| Direct production wages | 6,500 |
| Prime cost | 15,500 |
| Indirect material cost | 1,400 |
| Packaging for delivery to customers | 1,200 |
| Indirect production wages | 1,900 |
| Design costs for Racquet M | 500 |
| Works Cost | 20,500 |
| Accounting salaries | 7,500 |
| Production manager’s salary | 1,800 |
| Cost of Goods Sold | 29,800 |
| Advertising expenditure | 8,000 |
| Salesmen’s salaries | 6,300 |
| Delivery vehicle running costs | 600 |
| Sales office costs | 4,100 |
| Delivery vehicle driver wages | 1,300 |
| Total Costs | 50,100 |
|
Income Statement for the period ended 31st December |
||
| Particulars | Working | £ |
| Revenue | 80x650 | 52,000 |
| Costs | 50100x80/100 | (40,080) |
| Profit | 11,920 | |
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Required information
[The following information applies to the questions
displayed below.]
The following cost data for the year just ended pertain to
Sentiments, Inc., a greeting card manufacturer:
Direct material
$
2,300,000
Advertising
expense
99,000
Depreciation on
factory building
115,000
Direct labor:
wages
540,000
Cost of finished
goods inventory at year-end
115,000
Indirect labor:
wages
142,000
Production
supervisor’s salary
46,000
Service
department costs*
100,000
Direct labor:
fringe benefits
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Indirect labor:
fringe benefits
30,000
Fringe benefits
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