How do you do this acct1511 question? confused with work in progress and goods on han (1 Viewer)

[lau101]

On 1 January 2014 Lloyd Ltd commenced a business of manufacturing leather bags. Lloyd Ltd's accounting records show:
• $300 000 direct labour for the month to 31 January 2014
• $500 000 direct materials purchased for the month to 31 January 2014
• $250 000 total overhead incurred for the month to 31 January 2014
• $100 000 direct materials on hand at 31 January 2014
• $80 000 work in progress inventory at 31 January 2014

The cost of goods manufactured for the month of January 2014 is?

Thanks so much

 

[lau101]

Re: How do you do this acct1511 question? confused with work in progress and goods on

On 1 January 2008, a new motor vehicle with a useful life of 4 years and an estimated residual value of $12 000 was purchased by a business for $54 000. The straight-line method is employed and the financial year ends on 31 December.

What was the accumulated depreciation at 31 December 2010?
Select one:
a. $42 000
b. $31 500
c. $21 000
d. none of the above

Also I said this is B? Correct? : )

 

[Smile12345]

Re: How do you do this acct1511 question? confused with work in progress and goods on

On 1 January 2008, a new motor vehicle with a useful life of 4 years and an estimated residual value of $12 000 was purchased by a business for $54 000. The straight-line method is employed and the financial year ends on 31 December.

What was the accumulated depreciation at 31 December 2010?
Select one:
a. $42 000
b. $31 500
c. $21 000
d. none of the above

Also I said this is B? Correct? : )

You're correct...

Reason being:

Motor Vehicle worth: $54 000

Less Residual value: $12 000

= Depreciable Amount: $42, 000

If the Useful Life is 4 years, using straight line depreciation, this is a depreciation rate of: 25%/p.a.

So 25% of $42,000 = $10, 500

And 31 December is 3 yrs after 1 January... So 3 x $10, 500 = $31, 500

Hope this is correct now.

 

[lau101]

Re: How do you do this acct1511 question? confused with work in progress and goods on

thanks so much! so its not 3 years...that was confusing me?

 

[lau101]

Re: How do you do this acct1511 question? confused with work in progress and goods on

so thats 3 years? start of 2008 to end of 2010

 

[lau101]

Re: How do you do this acct1511 question? confused with work in progress and goods on

but you said dec and jan are the same D: I'm so confused
they started in january and the year ends indecember!

 

[Smile12345]

Re: How do you do this acct1511 question? confused with work in progress and goods on

Sorry, you're right... I went into it too quickly!

 

[lau101]

Re: How do you do this acct1511 question? confused with work in progress and goods on

thats ok, thanks so much!

 

[twinshadow]

Re: How do you do this acct1511 question? confused with work in progress and goods on

Can anyone please help me with this one?! I'm confused!

V Ltd's records at year end showed that there were 60 units on hand at cost of $50 each. A stock count at year end found there were only 52 units of inventory on hand. V Ltd had sold 100 units of inventory in the last month of the year realising a net price of $45 after selling costs. Which of the following statements is true?

Select one:
a. Sales in the last month of the year $4 500
b. Loss of inventory $660
c. Inventory on hand at year end $2 600
d. Inventory on hand at year end $2 340