Twistweave osbourne practice exam 1

emmag

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.

imota

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

Esme

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

imota

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?

Esme

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

imota

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?

Esme

Yeah u are right!! I sent mine in on Friday the other way round

Well done, thx for pointing that out!