E-LEARNING COST ACCOUNTING ASSIGNMENTAnswer all the THREE Questions.1 Mr Gardens, the financial controller of Sugarland Ltd, accidentally tossed the company's costrecords into a wastebasket which had been light .On realising that mistake, he rushed to theroaring blaze and managed to retrieve only a few of the records. From the salvaged records, hemanaged to determine the following facts about the current year 2020:(i) Sales totaled sh 1,000,000 during 2020.(ii) The beginning inventories for the year were: work in progress sh 120,000;Finished goods sh 60,000.(iii) There were no closing inventories of raw materials.(iv) Direct labor is equal to 25% of conversion cost; direct, labor is also equal to 40%of prime cost.(v) The work in progress inventory decreased by sh 20,000 during the year.(vi)Gross margin during the year was 55% of sales.(vii) Manufacturing overheads amounted to sh 240,000 in the year.(iv) Administrative expenses for 2014 were twice as great as net income but only25% of selling expenses.The company's Board of directors requires cost statements from Mr. Gardensfor an urgent board meeting.Required: Prepare cost statements in good form to show:foa) Cost of goods manufacturedb) Cost of goods soldc) Profit for the yearcost).(clearly show workings for direct material and direct laborfollowing data relates to June 2021:

Cost sheet gives a clear cut picture of the cost of goods manufactured, the cost of goods, sold, and…

Answered: Cost of goods manufactured

Business

Accounting

Cost of goods manufactured

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which of the following cost is included in cost of goods sold? customer service cost manufacturing…

A: In layman's language, the Cost of goods sold is nothing but the total cost incurred to produce a…

Q: How do you calculate Cost of goods purchased

A: Cost of goods purchased (COGP) refers to the total cost incurred by a company to purchase inventory…

Q: How is the cost of goods sold calculated?

A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…

Q: How is the cost of goods manufactured calculated?

A: Cost of Goods Manufactured, also known to as COGM, is a term used in managerial accounting that…

Q: Refer to the T-account below: Debit Balance (4) (6) (9) Balance Work In Process 30,000 (12) 90,000…

A: Work in process ledger represents direct material, direct labor and manufacturing overheads. All the…

Q: How does the unit cost of producing an item depend on the total quantity of items that have been…

A: Unit cost is the cost of producing per unit. Unit cost includes both variable and fixed cost that…

Q: What are the methods used to determine the cost of goods?

Q: how do I make a cost of production report?

Q: Which of the following describes the term ‘cost unit’? A basis for cost classification A…

A: Cost unit is the per-unit cost incurred to produce the product. It includes both costs i.e fixed…

Q: What are the differences between a product cost and a period cost

A: In accounting we say that costs are often product costs or period costs. The difference between the…

Q: Is (freight-in, materials) included in the cost of goods manufactured statement

A: The cost of having goods or materials delivered to a business for manufacture or resale is known as…

Q: How do you find cost of goods manufactured?

A: Cost of goods manufactured is the total costs incurred to manufactured goods it includes materials…

Q: manufacturing cost and non-manufacturing cost, provide an example of each type.

A: COST is a measurement in monetary terms of the amount of resources used for the purpose of…

Q: st of googs sold and intrest expens

A: The cost of goods sold can be calculated by using the inventory turnover ratio. Inventory turnover…

Q: Shipping of Costs for a Shipping Department

A: What is shipping and handling? Shipping and handling is the process of preparing and packing an…

Q: What is a cost of production report and what information does it show?

A: Production means conversion of raw materials into finished goods and the process involved is…

Q: Define cost of goods sold.

A: Cost: It refers to the sum total of economic value to get an asset in place and ready for use.

Q: How to calculate manufacturing costs

A: How to calculate manufacturing costs.

Q: what are relevent cost of direct material

A: The management of the manufacturing firm has to take certain decisions regarding the…

Q: How do you compute the cost of goods manufactured?

A: Cost of goods manufactured is the total amount of expense incurred in order to convert work in…

Q: how to do a cost of prodution report

A: The cost of production report is prepared by the following four steps

Q: what is production cost? what is tangible assets? what is operating expenses? what is cost of goods…

A: Expenses are those costs which are required to be incurred by the company to smoothly run the…

Q: What are the difference between the cost of goods sold of manufacturing and service type businesses…

A: Introduction:

Q: What costs are incurred when making a product? How are they recorded when incurred?

A: Cost to create a product is know as product cost. These cost include all direct cost like direct…

Q: Explain the difference between a product cost and a period cost.

A: Product costs: Product costs are the costs which are incurred in the production of the goods. These…

Q: The cost equation and the distinction between product and period costs are described

A: The cost equation and the distinction between product and period costs are described will be…

Q: Which factors contribute to the cost of direct labor?

A: Direct labour refers to the labour which is directly related to the production of products of any…

Q: What does period cost include

A: Period costs are the expenses which are typically related to passage of time and not to any…

Q: Different between raw materials, work in process and finished goods inventories

A: A manufacturing company generally have three types of inventories in its stock: Raw Materials Work…

Q: How standard costing control the business activity

A: Standard Costing is the technique of setting up standard costs and applying them to measure the…

Q: What kind of cost are considered Manufacturing Overhead Cost?

A: Manufacturing overhead costs are the costs in a factory that you can't easily link directly to a…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The object of the manufacturing account it ? reached to cost of goods sold. prime cost. cost of raw material purchased. cost of goods manufactured no one
How do you calculate costs of goods sold?
When trying to identify product and period costs, is cash, work inprocess, and raw materials inventory considered to be period or product costs?
is freight out/transportation out included in the calculation of cost of goods manufactured?
what is relevent cost of direct labour
Compute cost of goods manufactured.
How do you compute the unit varible cost for an item in manufacturing?
the costs transferred to finished goods inventory are called ?
What is the production cost report?