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# Twistweave osbourne practice exam 1

Feels At HomeRegistered Posts: 35
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

Total overtime premium is treated as an indirect cost

(a) Fill in the table

DR CR
Work in progress 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.

• 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

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
• 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

Total overtime premium is treated as an indirect cost

(a) Fill in the table

DR CR
Work in progress 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 Wages control 47,520

b- total hours worked was 7,200 so 7,200 x 2.50 = £18,000 overheads absorbed
• 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?
• 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

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
Total production cost = 221,520
Production cost per roll = 738
• 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