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Twistweave osbourne practice exam 1

emmagemmag Feels At HomeRegistered Posts: 35
in AAT Level 3 (Level 6 in Scotland)
I'm stuck on task 1.4. Has anybody done it?

The following data relates to the direct labour for production of fabric TW1 for the month of march.
Direct labour hours worked = 7,200
Normal hours worked = 6,000
Overtime hours = 1,200
Normal time rate per hour = £6.60
Overtime premium = £3.30

Total overtime premium is treated as an indirect cost

(a) Fill in the table

DR CR
Work in progress control a/c
Production overhead control a/c
Wages control account

(b) Rerferring to you answer to task 1.2 ( which was £2.50 per direct labour hour) calculate the production overhead absorbed in the month of March.

Comments

  • imotaimota Settling In Nicely Registered Posts: 23
    I'm as well stuck with that, I did that this way, but I am not sure if is right or wrong
    Task 1.4 (A)

    Work in progress control account debit £39,600.
    Production overhead control account debit £11,880.
    Wages control account credit £51,480.

    (B) 180,000 / 72,000= £2.5 per direct

    Direct labour= 7200 x £2.5= £18,000
  • EsmeEsme Experienced Mentor Registered Posts: 711
    emmag wrote: »
    I'm stuck on task 1.4. Has anybody done it?

    The following data relates to the direct labour for production of fabric TW1 for the month of march.
    Direct labour hours worked = 7,200
    Normal hours worked = 6,000
    Overtime hours = 1,200
    Normal time rate per hour = £6.60
    Overtime premium = £3.30

    Total overtime premium is treated as an indirect cost

    (a) Fill in the table

    DR CR
    Work in progress control a/c
    Production overhead control a/c
    Wages control account

    (b) Rerferring to you answer to task 1.2 ( which was £2.50 per direct labour hour) calculate the production overhead absorbed in the month of March.

    I'm pretty sure it is...


    a- Direct labour costs = 7,200 x 6.60 = 47,520
    Indirect costs = 1,200 x 3.30 = 3,960

    You always debit WIP ac so

    Dr Work in progress 51,480
    Cr Prod overheads 3,960
    Cr Wages control 47,520

    b- total hours worked was 7,200 so 7,200 x 2.50 = £18,000 overheads absorbed
  • imotaimota Settling In Nicely Registered Posts: 23
    How have you done the task 1.6?
    Now I more confuse then before.

    In question 1.5

    A- £221,520 (£156,000+47,520+18,000)
    B- £738.40 per unit(221,520/300)
    Is it right?
  • EsmeEsme Experienced Mentor Registered Posts: 711
    imota wrote: »
    How have you done the task 1.6?
    Now I more confuse then before.

    In question 1.5

    A- £221,520 (£156,000+47,520+18,000)
    B- £738.40 per unit(221,520/300)
    Is it right?


    For 1.6 I debited production overhead ac 2,000
    credited production overhead ac 18,000

    both columns then equal 18,000.

    For 1.5 Direct materials = 156,000 (all of the issues on stock record card)
    Direct labour = 47,520
    Production overheads absorbed 18,000
    Total production cost = 221,520
    Production cost per roll = 738
  • imotaimota Settling In Nicely Registered Posts: 23
    Can you look again the task 1.4 (a)?

    I have looked osborne book tutorial on page n.85 and I tink we need put that like this:

    Dr Work in progress 47,520
    Dr Prod overheads 3,960
    Cr Wages control 51,480

    Can you look this and give me your opinion?
  • EsmeEsme Experienced Mentor Registered Posts: 711
    Yeah u are right!! I sent mine in on Friday the other way round :(

    Well done, thx for pointing that out!
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