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Sami Design Ltd manufactures Sand musical instrumenta for use by hgh schoel studenta. The company uses a job costing system in which manufacturing overheas is appi ed en the tasis of direct iabour fours. The company's budget During March, the firm began fwo production jobs: job nurber T81, consisting of 115trombones2A+j15+ Hhth 4+3he. job number C40, corsisting of 170 comets. The events of Mareh are deseribed as follows: 1. 1000 square metres of rotied Sami sheet metal wero purchased on erede fer $2000. 2. 400kilograms of Sami tiding were purchased on eredt for $1300. The following requis fions were fied on 5 March: 6. All Samilysis of labour time sheets revealed the following labour usage for March: 7- drect tabour: job number Te1, 200 hours g$29 per tour 8 - direct labour: job number c40,300 hours \& $29 per hour 9 - indirect Hbbur. general factory dest-ip, $1650 10 - indirect labour: factary supervisory salaries, $4300 " Deprociation of the factory building and equipment during March arrourted to $7300. 12 Rent paid in cash for warehouse space ised during March was $730. 13. Electricity cosss incurred during March amounted to $1395 The invices for these costs were received, but the bins were Mnot pad in March 14 March council rates and propety taxes on the factory were paid in cash $1460. ISlnsuance cost covering factory operatons for Mach was \$2t60 The ins uance poicy had been prepaid in February. 16 Costs of salaries and on-costs for sales and adtinitretive personnel paid in cash during March anounted to 53300. 17. Depreciation on adiniristrative office equipmert and space anourtad to $1650. 18 Other selling and administrative experses paid in caeh during Maroh arnounted to $1000. 19 Job number TB1 was completed in March. 20 Haif the trombones in job number T81 were sold on eredt ourng March for $200 each. Kequered: 1. Calculate the company's predetermined overhead rate for the curtent year. 2. Prepare journal entries to record the events of March. 3. Set up ledger accounts, and post the journal entries made in requirement 2. 4. Calculate the overapplied or underapplied overhead for March. Prepare a journal entry to close this balance into cost of goods sold. 5. Prepare a schedule of cost of goods manufactured for March. 6. Prepare a schedule of cost of goods sold for March. 7. Prepare an income statement for March. 8. Provide the management team of Sami Design Ltd with the issues could occur applying the current traditional manufacturing overhead costing system. 9. Analyse and describe the benefits of replacing Activily Base Costing (ABC). Sam Design Lod manufactures Sam musical insthuments for use by high sehoel stuoems. The compary uses a pob eosting syatem in which manufacturing overhead is appled on the botis of direct labcur hours. The comparry's budgei During Maren, the firm began two production jobs: job number T81, ecraisting of 115 trombones 3+jx, rofied hir job number C40, ewraisting of 170 comets. The events of Mareh are described as follows: 1. 1000 square metres of tolled Sarni shoet mekal were purchased on credit for 52000 . 2. 400wilagrams of Sami tubing were purchased on crect for $1300. The following rocusitions were filed on 5 March: 6 An alsaysis of labour time sheets revedied the following labour usage for March: 7. diect labout, pob number T81, 200 hours a5 529 per hour 8 - direct labcur: job number C40,300 hours (in) $29 per hour d - indirest labour: genaral factory clean-up. $1650 10 - insireet labour: factory supervisofy salaries, $4300 4 Deprecation of the factory buiding and equiprent during March amounted to $7300. v2. Rert pad in cash for warchouse space used during March was $730. B Dectricty coss incurted during March ampurted to $1395 The invoices for these costs were received, but the bills ware buat pasd in March. * Misch council rutes and property taoes cn the toctory were paid in cash. $1460 : 15 ineurance cost cevering factory operatons for March was 52160 The insturance polisy had been prepaid in Feorusry. 16Costa of sibaries and on-crats foe sdes and odministrative personnel pard in cosh during March amcunted to $3300. 17 Deprociation on administratwo ofico equ pment and vpace artounbod to \$1650: , 8 Other seling and admeistratwe expenses peid in cant durng March arriourted to $1000. i9 Job rumber TB1 was conclated in Marchi, 1. Calculate the company's predetermined overthead rate for the current year. 2. Prepare joumal entries to record the events of March. 3. Set to ledger accounts, and post the journal entries made in requirement 2 . 4. Caleulate the overapplied or underapplied overhead for March, Prepare a journal entry to close this balance Into coat of goods sold. 5. Prepare a schedule of cost of goods manutactured for March. 6. Prepare a schedule of cost of goods sold for March. 7. Prepare an income statement for March. 8. Provide the mansgement team of Sami Design Ltd with the issues could accur applying the current tracitional manuftcturing overthead costing system: 9. Analyse and describe the benetits of replacing Activity Base Costing (ABC). Sami Design Ltd manufactures Sand musical instrumenta for use by hgh schoel studenta. The company uses a job costing system in which manufacturing overheas is appi ed en the tasis of direct iabour fours. The company's budget During March, the firm began fwo production jobs: job nurber T81, consisting of 115trombones2A+j15+ Hhth 4+3he. job number C40, corsisting of 170 comets. The events of Mareh are deseribed as follows: 1. 1000 square metres of rotied Sami sheet metal wero purchased on erede fer $2000. 2. 400kilograms of Sami tiding were purchased on eredt for $1300. The following requis fions were fied on 5 March: 6. All Samilysis of labour time sheets revealed the following labour usage for March: 7- drect tabour: job number Te1, 200 hours g$29 per tour 8 - direct labour: job number c40,300 hours \& $29 per hour 9 - indirect Hbbur. general factory dest-ip, $1650 10 - indirect labour: factary supervisory salaries, $4300 " Deprociation of the factory building and equipment during March arrourted to $7300. 12 Rent paid in cash for warehouse space ised during March was $730. 13. Electricity cosss incurred during March amounted to $1395 The invices for these costs were received, but the bins were Mnot pad in March 14 March council rates and propety taxes on the factory were paid in cash $1460. ISlnsuance cost covering factory operatons for Mach was \$2t60 The ins uance poicy had been prepaid in February. 16 Costs of salaries and on-costs for sales and adtinitretive personnel paid in cash during March anounted to 53300. 17. Depreciation on adiniristrative office equipmert and space anourtad to $1650. 18 Other selling and administrative experses paid in caeh during Maroh arnounted to $1000. 19 Job number TB1 was completed in March. 20 Haif the trombones in job number T81 were sold on eredt ourng March for $200 each. Kequered: 1. Calculate the company's predetermined overhead rate for the curtent year. 2. Prepare journal entries to record the events of March. 3. Set up ledger accounts, and post the journal entries made in requirement 2. 4. Calculate the overapplied or underapplied overhead for March. Prepare a journal entry to close this balance into cost of goods sold. 5. Prepare a schedule of cost of goods manufactured for March. 6. Prepare a schedule of cost of goods sold for March. 7. Prepare an income statement for March. 8. Provide the management team of Sami Design Ltd with the issues could occur applying the current traditional manufacturing overhead costing system. 9. Analyse and describe the benefits of replacing Activily Base Costing (ABC). Sam Design Lod manufactures Sam musical insthuments for use by high sehoel stuoems. The compary uses a pob eosting syatem in which manufacturing overhead is appled on the botis of direct labcur hours. The comparry's budgei During Maren, the firm began two production jobs: job number T81, ecraisting of 115 trombones 3+jx, rofied hir job number C40, ewraisting of 170 comets. The events of Mareh are described as follows: 1. 1000 square metres of tolled Sarni shoet mekal were purchased on credit for 52000 . 2. 400wilagrams of Sami tubing were purchased on crect for $1300. The following rocusitions were filed on 5 March: 6 An alsaysis of labour time sheets revedied the following labour usage for March: 7. diect labout, pob number T81, 200 hours a5 529 per hour 8 - direct labcur: job number C40,300 hours (in) $29 per hour d - indirest labour: genaral factory clean-up. $1650 10 - insireet labour: factory supervisofy salaries, $4300 4 Deprecation of the factory buiding and equiprent during March amounted to $7300. v2. Rert pad in cash for warchouse space used during March was $730. B Dectricty coss incurted during March ampurted to $1395 The invoices for these costs were received, but the bills ware buat pasd in March. * Misch council rutes and property taoes cn the toctory were paid in cash. $1460 : 15 ineurance cost cevering factory operatons for March was 52160 The insturance polisy had been prepaid in Feorusry. 16Costa of sibaries and on-crats foe sdes and odministrative personnel pard in cosh during March amcunted to $3300. 17 Deprociation on administratwo ofico equ pment and vpace artounbod to \$1650: , 8 Other seling and admeistratwe expenses peid in cant durng March arriourted to $1000. i9 Job rumber TB1 was conclated in Marchi, 1. Calculate the company's predetermined overthead rate for the current year. 2. Prepare joumal entries to record the events of March. 3. Set to ledger accounts, and post the journal entries made in requirement 2 . 4. Caleulate the overapplied or underapplied overhead for March, Prepare a journal entry to close this balance Into coat of goods sold. 5. Prepare a schedule of cost of goods manutactured for March. 6. Prepare a schedule of cost of goods sold for March. 7. Prepare an income statement for March. 8. Provide the mansgement team of Sami Design Ltd with the issues could accur applying the current tracitional manuftcturing overthead costing system: 9. Analyse and describe the benetits of replacing Activity Base Costing (ABC)

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