- This topic has 6 replies, 2 voices, and was last updated 3 years ago by
.
- Posts
Dear sir:
The following represent the materials transactions for a company for the month of December 20X6:
$000s
Materials purchases 176
Issued to production 165
Materials written off 4
Returned to stores 9
Returned to suppliers 8
The material inventory at 1 December 20X6 was $15,000.What is the closing balance on the materials inventory account at 31 December 20X6?
I want to know why the opening inventory is 15?How to calculate it.The 15 is given in the question!!
It says that the inventory at 1 December is $15,000 (and all of the other figures are in thousands).
Ten employees work as a group.When production of the group exceeds the standard -200 pieces per hour-each employee in the group is paid a bonus for the excess production in addition to wages at hourly rates.
The bonus is computed thus:the percentage of production in excess of the standard quantity is found, and one half of the percentage is regarded as the employees’share. Each employee in the group is paid as a bonus this percentage of a Wage rate of $5.20 per hour There is no relationship beween the individual worker’s hourly rate and the bonus rate.
The following is one week’s record:
hours worked production
Monday 90 24500
Tuesday 88 20600
wed 90 24200
thrusday 84 20100
friday 88 20400
saturday 40 10200
480 120000
During this week, Jones worked 42 hours and was paid $3 per hour basic.
Complete the follwing:
The bonus rate for the week was $
The total bonus for the group for the week was$
The total pay for Jones for the week was $
Dear sir,I want to know haw to calculate the bonus rate?I can’t understand is(24000/96000)*5.2*0.5?Thank you very much.Hours worked Production
Monday 90 24500
Tuesday 88 20600
wed 90 24200
thrusday 84 20100
friday 88 20400
saturday 40 10200
480 120000
I am so sorry!In future you must start a new thread when you are asking about a different topic – this is obviously nothing to do with ‘material inventory account’ 🙂
The total hours worked ar 480 hours. Therefore the standard production is 480 x 200 = 96,000 units.
They actually produced 120,000 units and so the excess production is 120,000 – 96,000 = 24,000 units.
So the % excess is 24,000 / 96,000. Half of this is the employees share, so 24,000/96,000 x 0.5. The is paid at $5.20 per hours, so 24,000/96,000 x 0.5 x $5.20
- The topic ‘Material inventory account’ is closed to new replies.