TOPIC 11 HOMEWORK ANSWERS

SEMESTER 2, 2011 FINAL EXAM QUESTION 5

[GROUP 1]

(a) Dr WIP $10,000 1 mark

Cr Raw materials $10,000

(b) Dr WIP $8000 1 mark

Cr Wages payable $8000

cf) Acceptable alternative answer:

Dr Direct Labour $8000
Cr Wages payable $8000
Dr WIP $8000
Cr Direct Labour $8000

(c) Dr WIP $32,000 1 mark

Cr Overhead Control $32,000

[GROUP 2]

(d) Dr Overhead Control $36,000 1 mark

Cr Rent payable $25,000
Cr Electricity payable $5,000
Cr Accumulated Depreciation – equipment $6,000

(e) Dr COGS $2,000 1 mark for all 3 lines

Dr WIP $1,000
Dr FG $1,000
Cr Overhead Control $4,000 1 mark for correct figure, regardless CR/DR

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SEMESTER 1, 2013 FINAL EXAM QUESTION 5 (3 MARKS)

[GROUP 3]

(a)

MOH Control
Actual 36,000 OH applied ($1250x50) 62,500
Rent 25,000
Electricity 5,000
Depreciation exp 6,000
Over-applied 26,500
62,500 62,500

1 mark for Over-applied $26,500

[GROUP 4]

(b)
Actual MOH = 36,000
Over-applied MOH = 26,500

DR OH Control 26,500
CR WIP 10,600
CR FG 10,600
CR COGS 5,300
1 mark

Workings
Proportion Allocation Post-Adjusted balance
WIP (20 / 50) x 26,500 10,600 9,400
FG (20 / 50) x 26,500 10,600 9,400
COGS (10 / 50) x 26,500 5,300 4,700
total 50 26,500

(c) Because at the beginning of the month of June or during June when production was
ongoing, the information was not available OR only available at the end of June, and
therefore has to be estimated.

2
SEMESTER 2, 2007 FINAL EXAM QUESTION 5 (15 MARKS)

[GROUP 5]

Part A (10 marks)

(a) 5 marks – 1 mark each (1 or 0). Each journal entry must be correct.

1. Dr WIP 380,000
Cr Raw materials 380,000

2. Dr WIP 360,000
Cr Wages payable 360,000

3. Dr WIP 480,000
Cr Overhead control 480,000

4. Dr Finished goods 940,000

Cr WIP 940,000

5. Dr COGS 900,000
Cr Finished goods 900,000

[GROUP 6]

(b) 5 marks

WIP
o/b 20,000 940,000 Finished goods
Raw materials 380,000 (0.5 mark)
Wages 360,000 (0.5 mark)
Overhead control 480,000 (1 mark) 300,000 (0.5 mark) c/b
1,240,000 1,240,000

Finished Goods
o/b 10,000 900,000 COGS (1 mark)
WIP 940,000 (1 mark) 50,000 (0.5 mark) c/b
950,000 950,000

3
[GROUP 7]

Part B (5 marks)

Statement of Cost of Goods Manufactured Mark

Direct Materials 1,724,000 1

Direct Labour 2,120,000 1
Factory Overheads
Indirect materials 3,000 0.5
Factory supplies 12,500 0.5
Depreciation - factory 134,000 0.5
Factory supervision 183,500 0.5

Total manufacturing costs 4,177,000

WIP, o/b 164,000
1
WIP, c/b 184,000
Cost of goods manufactured 4,157,000

Deduct 0.5 per wrong account

SEMESTER 1, 2008 FINAL EXAM QUESTION 6

[GROUP 8]

3 marks: 2 for getting correct total cost, 1 for dividing by bottle number

Mixing Dept. Bottling Dept. Total Cost

Direct materials 17000 5000 22000
Direct labour 5000 1000 6000
Manufacturing OH 10000 2000 12000
Total production cost 32000 8000 40000
Units produced 1250 litres 5000 bottles
Cost per bottle $8 (40000/5000)

(b) 2 marks

Dr Overhead control 3000

Cr COGS 3000