Instructions
1. Used MYOB
accounts is “I would like to build my own accounts list”.
2. Company
name: AA Corp.
3. Applies the
time billing to calculate direct/indirect labor cost.
Information
AA Corporation starts on 1 November and produces
product X consisting of the regular product (RP) and special product (SP). The
accounting policy for inventory is first in first out (FIFO) with the perpetual
method. The transactions during November are as follows.
Transactions
1 The
beginning stock capital is $650,000 which allocated to Bank $50,000, Building
$400,000, and Equipment $200,000.
2 Purchase raw
materials (FOB Destination) with term 10/10, n/30 from S1 consist of Raw
Materials 1 (RM1) 500 units @$120, Raw Materials 2 (RM2) 300 units @$140,
Supporting Materials 1 (SM1) 200 units @$80, and Supporting Materials 2 (SM2)
100 units @$50.
2 Purchase
Office Supplies (OS) from S2 on cash, 30 units @ $20.
3 Processes RP
for 100 units in Department A with details:
|
Component |
Amount |
|
RM1 80 units
@$120 |
$9,600 |
|
RM2 50
units @$140 |
$7,000 |
|
SM1 20
units @$80 |
$1,600 |
|
Direct labor: Employee 1 (E1) 12 hours @$12 Employee 2 (E2) 12 hours @$12 Employee 3 (E3) 12 hours @$12 |
$432 |
|
Supervisor: Supervisor1 |
$168 |
4 Department A
transferred 50% of RP to Department B. The details of the transfer and additional
costs for Department B are as follows.
|
Component |
Amount |
|
Transfer
from Department A (50 units of RP @$188) |
$9,400 |
|
SM2 4
units @$50 |
$200 |
|
Direct
labor: Employee
4 (E4) 10 hours @$14 Employee
5 (E5) 10 hours @$14 |
$280 |
|
Supervisor: Supervisor 2 |
$170 |
5 Received
order and payment in advance from C1 for 10 units of RP, $5,000.
5 Department B
transferred 40 units of RP1 (or first production of RP if it has the same price per
unit) to finished goods and also processed 30 units of RP from Department A
with additional costs.
|
Component |
Amount |
|
Transfer
from Department A (30 units of RP @$188) |
$5,640 |
|
SM2 2
units @$50 |
$100 |
|
Direct
labor: Employee
4 (E4) 6 hours @$14 Employee
5 (E5) 6 hours @$14 |
$168 |
|
Supervisor: Supervisor 2 |
$122 |
6 Received
order for 15 units of SP from C2 with a contract of $650/unit. The payment will be
made after the goods are delivered.
6 Delivered
the 10 units of RP to C1 (Do not forget to check the setup of linked accounts
of sales in MYOB at first).
6 Department A
processed 15 units of SP with details:
|
Component |
Amount |
|
RM1 12
units @$120 |
$1,440 |
|
RM2 8
units @$140 |
$1,120 |
|
SM1 3
units @$80 |
$240 |
|
Direct labor: Employee 1 (E1) 2 hours @$12 Employee 2 (E2) 2 hours @$12 Employee 3 (E3) 2 hours @$12 |
$72 |
|
Supervisor: Supervisor 1 |
$53 |
6 Department B
transferred 40 units of RP to the finished product and processed 20 units of RP
from Department A with details:
|
Component |
Amount |
|
Transfer
from Department A (20 units of RP @$188) |
$3,760 |
|
SM2 1
units @$50 |
$50 |
|
Direct
labor: Employee
4 (E4) 3 hours @$14 Employee
5 (E5) 3 hours @$14 |
$84 |
|
Supervisor: Supervisor 2 |
$126 |
7 Department A
start to process RP for 100 units with details:
|
Component |
Amount |
|
RM1 80
units @$120 |
$9,600 |
|
RM2 50
units @$140 |
$7,000 |
|
SM1 20
units @$80 |
$1,600 |
|
Direct labor: Employee 1 (E1) 12 hours @$12 Employee 2 (E2) 12 hours @$12 Employee 3 (E3) 12 hours @$12 |
$432 |
|
Supervisor: Supervisor 1 |
$168 |
7 Department B
received and processed 15 units of SP from Department A with additional costs
as follows.
|
Component |
Amount |
|
Transfer
from Department A (15 units SP @$195) |
$2,925 |
|
SM2 4
units @$50 |
$200 |
|
Direct
labor: Employee
4 (E4) 10 hours @$14 Employee
5 (E5) 10 hours @$14 |
$280 |
|
Supervisor: Supervisor 2 |
$60 |
8 Department B
transfers 20 units of RP and 15 units of SP to finished goods.
9 Delivered
the 15 units of SP to C2 and received payment.
9 Department B
processed 75 units of RP from Department A and added costs with details:
|
Component |
Amount |
|
Transfer
from Department A (75 units of RP @$188) |
$14,100 |
|
SM2 6
units @$50 |
$300 |
|
Direct
labor: Employee
4 (E4) 10 hours @$14 Employee
5 (E5) 10 hours @$14 |
$280 |
|
Supervisor: Supervisor 2 |
$170 |
10 Paid payable
to S1 (transaction 2).
11 Deposit to bank $50,000 as additional capital and paid all salaries and wages payable.
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