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Homework answers / question archive / 1 Question 15 Not yet answered A manufacturing process is used to produce masses of identical units
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Question 15 Not yet answered A manufacturing process is used to produce masses of identical units. Given the following: WIP beginning (80 % Direct material, 60 % conversion) 500 units Started during current period 9,000 units WIP Ending (60 % Direct material, 40 % conversion) 1,500 units Marked out of 3.00 P Fog question Using FIFO method, the work done to date in current period in equivalent unit for material costs will be 1 ?. B I E E c? 1
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3 tot Edge Company's salaried employees are paid biweekly. Occasionally, advances made to employees are paid back by payroll deductions. Information relating to salaries for the calendar year 2019 is as follows: 12/31/18 12/31/19 Employee advances £6,000 £9,000 Accrued salaries payable 32,500 Salaries expense during the year 325,000 Salaries paid during the year (gross) 312,500 At December 31, 2019, what amount should Edge report for accrued salaries payable? ? Answer:
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| Answer: 8,500 Units |
Calculation:
Physical flow
| Units in Beginning WIP | 500 | Units Completed and Transferred: | |
| Units Started this period | 9,000 | Units from Beginning WIP | 500 |
| Total Units | 9,500 | Units started and completed (9,000 - 1,500) | 7,500 |
| Total Units completed and transferred | 8,000 | ||
| Units in Ending WIP | 1,500 | ||
| Total Units | 9,500 |
Equivalent units for material costs
| Particulars | Computation | Units |
| Units from Beginning WIP | 500 Units * (100% - 80%) | 100 |
| Units started and completed | 7,500 Units * 100% | 7,500 |
| Units in Ending WIP | 1,500 * 60% | 900 |
| Total Equivalent Units |
8,500 |
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| Calculation of Accrued Salary for 2019: | |||||||||
| Salary expense for year 2019 | £ 3,25,000 | ||||||||
| Less: Salary Already Paid ( pertaining to Current Year) | (2,80,000) | (Note: Calculated as Total Paid minus Opening Accrued i.e 3,12,500-32,500) | |||||||
| Less: Opening Employee advance set off during the year | (9,000) | Refer Note 1 | |||||||
| Accrued Salary as at year ended 2019 | £ 36,000 | ||||||||
| Note 1: Assumed that entire opening employee advance is set off against Current Year Payable and GBP 6000 is granted as advance as on 31st December, 2019 itself and will be settled against year 2020 salary. |
