ECR - Dec 09

what a yucky paper!

Stuck on task 1.4 - reapportionment q. I usually fly through these kinda questions but for this paper i'm stuck on something

The q is "warehouse and stores expect to issue £25.2 million worth of materials to branded products manufacturing and £16.6 million worth to own label products manufacturing"


Total for warehouse and stores is £785,960

The answers are:
branded products manufacturing - £471,576
own label products manufacturing - £314,384

Now how on earth did they get those two answers do anyone know??

Comments

  • anniebabe
    anniebabe Registered Posts: 595
    you add the 252000 and 168000 = 42000 and then divide into 785960 multiply like the others. x
  • Marga
    Marga Registered Posts: 981
    hi emma

    25.2 + 16.6 = 41.8 total products

    25.2 / 41.8 = 60%
    16.6 /41.8 = 40%

    Therefore

    60% of 785960 = branded products manufacturing - £471,576
    40% of 785960 =own label products manufacturing - £314,384
  • emma123
    emma123 Registered Posts: 108 ? ? ?
    brilliant! thanks annie and marga :)
  • Vince22
    Vince22 Registered Posts: 12 Regular contributor ⭐ ? ⭐
    I had a go on that paper today. I got really stuck on task 1.6 (b) where you have to post the actual and recovered overheads to accounts. The answer booklet shows the actual overhead posted as a credit entry to the overhead control account. But I've learned that the actual overheads are a debit entry in this account, and the amount absorbed goes on the credit side, then debited to the WIP account. The answer given is really confusing. Can anyone clarify why they've done it that way?
  • emma123
    emma123 Registered Posts: 108 ? ? ?
    I've learnt that you always DR the WIP a/c. That help any?
  • Vince22
    Vince22 Registered Posts: 12 Regular contributor ⭐ ? ⭐
    Yeah, that's what I normally do. But the question didn't include the WIP account. It said,

    Complete the following table to show the journal entries for the absorption of overheads in Quarter 1.

    Debit (£) Credit (£)
    Overhead absorbed
    Under/over absorption
    Overhead control account

    I've never head of an 'overhead absorbed account', nor and 'under/over absorption account'
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