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    The document summarizes inventory valuations using different costing methods - FIFO, LIFO, and average cost - for Pisces Limited for the month of June 2007. It also provides overhead allocation statements for Makemore Limited and Clerk Maxwell.

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    The document summarizes inventory valuations using different costing methods - FIFO, LIFO, and average cost - for Pisces Limited for the month of June 2007. It also provides overhead allocation statements for Makemore Limited and Clerk Maxwell.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
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    6 views10 pages

    Seminar 2 Solutions

    Uploaded by

    ojadpojaspojd2
    The document summarizes inventory valuations using different costing methods - FIFO, LIFO, and average cost - for Pisces Limited for the month of June 2007. It also provides overhead allocation statements for Makemore Limited and Clerk Maxwell.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 10

    Pisces Limited

    Profit for the month of June 2007 and value of closing inventory - F.I.F.O valuation
    Date
    2-Feb
    11-Feb
    14-Feb
    15-Feb
    16-Feb
    22-Feb
    27-Feb
    Total

    Number of units purchased


    200

    Unit cost

    Number of units sold

    10
    160

    200

    9.8

    100
    200

    9.6
    9.4

    200

    700

    180
    540

    Number of units sold

    Cost of goods sold

    1600

    Inventory

    Pisces Limited
    Profit for the month of June 2007 and value of closing inventory - L.I.F.O valuation
    Date
    2-Feb
    11-Feb
    14-Feb
    15-Feb
    16-Feb
    22-Feb
    27-Feb
    Total

    Number of units purchased

    Unit cost

    200

    10

    200

    9.8

    100
    200

    9.6
    9.4

    Number of units sold

    160
    200

    700

    180
    540

    Number of units sold

    Cost of goods sold

    Inventory

    Pisces Limited
    Profit for the month of June 2007 and value of closing inventory - Average cost valuation
    Date

    Number of units purchased

    2-Feb
    11-Feb
    14-Feb
    15-Feb
    16-Feb
    22-Feb
    27-Feb
    Total
    Average cost per unit =
    Thus cost of goods sold =
    Sales =
    Cost of goods sold =
    Profit =
    Inventory =

    200

    Unit cost

    Number of units sold

    10
    160

    200

    9.8

    100
    200

    9.6
    9.4

    700

    6800

    200

    9.714286
    5245.714
    8370
    5245.714
    3124.286
    1554.286

    180
    540

    Number of units sold

    Cost of goods sold

    Inventory

    Makemore Limited
    Overhead allocation statement
    Cost type

    Basis of allocation

    Supervisors salaries
    Computer advisory
    Rent and Business rates
    Depreciation
    Repairs
    Total
    Relocation of service dep.
    Total allocation of overheads

    Number of employees
    Number of employees
    Floor area
    Cost
    Actual spend

    Labour hours
    Rate per hour
    Machine hours
    Rate per hour

    3500
    20000
    3.5
    2
    1.75 3.333333
    7
    5

    45000
    4000
    1.5 1.428571
    3 3.636364
    40

    Total
    25000
    18000
    20000
    21000
    4000
    88000

    Ratio:Split
    1000:2000:500
    1000:2000:500
    10000:6000:4000
    30000:15000
    2800:1100:100

    A
    1000:2000:500
    1000:2000:500
    10000:6000:4000
    30000:15000
    2800:1100:100

    7142.857
    5142.857
    10000
    14000
    2800
    39085.71
    6145.714
    45231.43

    14285.71
    10285.71
    6000
    7000
    1100
    38671.43
    4097.143
    42768.57

    80000
    0.565393

    40000
    1.069214

    100000
    0.452314

    200000
    0.213843

    C
    3571.429
    2571.429
    4000
    100
    10242.86

    Clerk Maxwell
    Cost type

    Basis of allocation

    Total

    Indirect labour
    Number of employees
    Indirect materials
    In proportion of direct materials
    Power
    KW hours
    Rental of premises
    Floor area (m2)
    Depreciation
    Book value
    Salaries
    Number of employees
    Heat and light
    Floor area (m2)
    Totals
    Relocation of service dep.
    Total allocation of overheads

    112500
    127500
    60000
    69000
    112500
    78000
    34500
    594000

    Ratio:Split
    40:75:10
    70:70
    15:13:02
    25:17:04
    250:180:20
    40:75:10
    25:17:04

    Labour hours

    125
    3.125
    1.666667
    12.5

    140
    30
    46
    2
    2
    1.84
    2 2.307692 2.705882
    15
    11.5

    450
    125
    46
    1.8
    3.125
    1.84
    2.5 1.666667 2.705882
    22.5
    12.5
    11.5

    115
    2.875
    1.533333

    Tooling

    Assembly

    36000
    63750
    30000
    37500
    62500
    24960
    18750
    273460
    11561.74
    285021.7

    67500
    63750
    26000
    25500
    45000
    46800
    12750
    287300
    21678.26
    308978.3

    35.62772

    19.31114

    Canteen
    9000
    4000
    6000
    5000
    6240
    3000
    33240

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