Question

# Question 4: Hello Manufacturing Systems Pty Ltd provides the following information: Administrative salaries Advertising expense Direct...

Question 4:

Hello Manufacturing Systems Pty Ltd provides the following information:

 Administrative salaries Advertising expense Direct labour Factory depreciation Finished goods, 1 July 2015 \$  120 000 2 000 23 000 8 000 23 000 Finished goods, 30 June 2016 10 000 Income tax expense 30% of income before Profit Indirect labour 20 000 Materials inventory, 1 July 2015 42 000 Materials inventory, 30 June 2016 36 000 Materials purchased 15 000 Sales 208 000 Work in process, 1 July 2015 15 000 Work on process, 30 June 2016 10 000

Required

A Calculate total manufacturing costs for the period ending 30 June 2016.

B. Calculate cost of goods manufactured for the period ending 30 June 2016.

C. Calculate cost of sales for the period ending 30 June 2016.

D. Calculate profit or loss after tax for the period ending 30 June 2016.

a)Total mfg cots= materials used+ labour+mfg overhead
material used= beg mat inv+material purchased-ending inv
=42000+15000-36000=21000
total mfg costs=21000+23000+8000+20000=72000
b)cost of goods mfg= Beg WIP+total mfg cots-ending WIP
=15000+72000-10000=77000
c)cost of sales= Beg finished goods+cost of goods mfg-ening goods
=23000+77000-10000=80000
=(208000-80000-120000-2000)*(1-30%)
=4200