Twistweave osbourne practice exam 1

emmagemmag Feels At HomePosts: 35Registered
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 Posts: 23Registered
    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 Posts: 711Registered
    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 Posts: 23Registered
    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 Posts: 711Registered
    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 Posts: 23Registered
    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 Posts: 711Registered
    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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