I really need your help in solving these. I’m so desperate as a…
QuestionI really need your help in solving these. I’m so desperate as a… I really need your help in solving these. I’m so desperate as a need to finish it today.This is all the information I have if you need something else just let me know.ill upload the templates thank you Could you help me at least with the job card summary and can finish the rest and really stuck in that. ScenadesperaterioYou work as the assistant accountant for Night Owl Bedroom Design Pty Ltd; a bedroom furniture design company that manufactures high-end bespoke bedroom furniture for their clients. So that all of the manufacturing costs are captured for each client, Night Owl utilises a job costing system as per company policy. Your role is to Do all of the necessary journal entries and ledger accounts, and summarise monthly costs into the monthly job card summary template. This task requires you to identify and summarise costs as either direct or indirect costs. Your role also includes the preparation of the monthly Trading Statement. The company policy and procedures (extract) outlines all of the processes you need to follow. You will need to refer to this document in order to record the transactions and make any reports. PLEASE IGNORE GST FOR THE PURPOSE OF THIS QUESTION Financial dataYou have gathered the following details for the month of March: Inventories – 01 March Raw Materials $36,500Work In Progress: Job 190227 $7,255 Job 190228 $3,500Finished Goods: Job 190226 $8,920 TransactionsThe following invoices (bills) were received during the month of March. Woody’s Timber Merchants Ltd $12,000Oz Nails and Fasteners Ltd $9,800Council Rates (factory) $4,250NCA Insurance Brokers – factory insurance bill for 12 months $16,900Josh Daniel Professional Wood Turning – subcontractor for Job 190228 $2,200Factory Electricity $3,250 On the 3rd March, the factory floor manager, Frank Smith, lodged Materials Requisition number 1823 to the factory store and requested the following materials to be issued to production:Image transcription textNight Owl Bedroom MATERIALSREQUISITION Design Pty Ltd 123Slumber Ave HOMETOW… Show more Materials store issued the above materials to production, however, on the 7th March Frank later returned 7m of the raw teak to the factory store as they ordered more than they required for the job. The weekly time-sheets for each staff member for March have been summarised in the monthly batch summary and is ready to be entered into the ledger system and paid. As part of this process the monthly payroll cost needs to be allocated as either direct labour or indirect labour. The monthly payroll summary can be found on the following workbook: FNSACC517_AT2_TMP_NightOwl_TQ_V1 Additional InformationAt the end of March Jobs 190302 and 190303 were still incomplete.Jobs 190227, 190228 and 190301 were completed.Jobs 190226, 190227 and 190228 were invoiced to customers at the mark up as per company policy. REQUIREDWith reference to the attached Accounting Policy and Procedure (extract) document, you are required to perform the following:(a) Prepare journal entries to record the transactions for the month, including ALL payroll transactions. Use the journal entry template provided included in the following workbook: FNSACC517_AT2_TMP, NightOwl_TQ_V1(b) Do a journal entry to record monthly factory depreciation. The current value of factory machinery is $135,000. Use the journal entry template provided.(c) Allocate the direct costs to each job using the Job Summary Sheet template provided in the following workbook: FNSACC517_AT2_TMP, NightOwl_TQ_V1. HINT: Start by entering the opening balances of WIP in the summary sheet.(d) Calculate the Factory Overhead Applied for the month of March, and allocate to jobs in the Job Summary Sheet. You will need to refer to the company policy.(e) Prepare the journal entries to record jobs completed.(f) Prepare the journal entries to record jobs invoiced to customers.(g) Prepare the factory ledger accounts for Material Control, Labour Control, Factory Overhead Control, FOH Applied, Work in Progress, Finished Goods and Cost of Goods Sold. Templates for the ledger accounts can be found on the workbook: FNSACC517_AT2_TMP, NightOwl_TQ_V1.HINT: Don’t forget the opening balances!(h) Calculate and record any over or under-applied factory overheads for the month of March.(i) Make trading Statement for March, including any over or under-applied factory overheads using the template provided on workbook: FNSACC517_AT2_TMP, NightOwl_TQ_V1 Additional resources:Company policy extractTemplates workbook (Excel) – FNSACC517_AT2_TMP, NightOwl_TQ_V1 ACCOUNTING POLICIES AND PROCEDURES MANUAL (extract Mission StatementNight Owl Bedroom Design offers custom made, high quality bedroom furniture with delivery and assembly, when required, to its customers and excellent customer service.Company BackgroundNight Owl Bedroom Design was established on 1st February 2017 as a small bedroom furniture retail business that sells bespoke, superior quality bedroom furniture. Our furniture is made by hand, not mass-produced, buy quality craftsman.Alfred Dowd is the sole proprietor of Night Owl Bedroom Design. He employs three sales and service personnel, as well as seven factory staff, including a factory floor manager and a store manager.Night Owl Bedroom Design operates a cheque account with Eastpac Bank, Hometown.Terms and Definitions used in the ManualManual – A system of approved policy statements and corresponding procedural guidelines that direct an organisation toward its operational goals.Policy – A stated course of action with a defined purpose and scope to guide decision-making under a given set of circumstances within the framework of corporate objectives, goals and management philosophies.Procedure – A series of prescribed steps followed in a definite regular order with ensure adherence to the guidelines set forth in the policy to which the procedure applies.Activity – an action, element or decision representing a prescribed step in the procedure process.Direct cost – any manufacturing cost that can be economically traced to a customer job.Indirect cost – any manufacturing cost that is not identified as a direct cost.Factory overhead applied – Factory overheads that are charged to a customer job using the current overheads application rate as per the policy.GST and BAS reportingFor the purpose of this exercise please ignore GST.Accounting systemThe business keeps an accrual set of accounts, with control accounts for the factory, being:Materials control (an inventory account)Labour controlFactory overhead controlThe business also keeps track of inventory using a perpetual inventory system. Inventory accounts include the following:Work in ProgressFinished GoodsThe business uses a separate account for recording Factory Overheads Applied.The business also uses Cost of Goods sold once jobs are invoiced to the customer.Journal EntriesThe business requires the recording of all transactions using the double-entry accounting system and general journals. Each journal must be recorded with an appropriate narration. The balance of the factory accounts is recorded in separate “T-Accounts”. These “T-Accounts” are updated with each transaction as required and reconciled against the job-costing system reports as appropriate.Journal entries must be signed once they are entered into the General Ledger accounts.Direct costs are to be recorded against Work in progress. Indirect costs are to be recorded against Factory overhead control. Each month, the ending balance of the Factory overhead control account must be transferred to the Factory overhead applied account.To ensure the correct application of the “matching convention” for accounting, the business records the following accruals:PrepaymentsInsurance is invoiced and paid annually. The invoice is to be recorded as prepaid insurance. Each month 1/12 of the insurance is written off to Factory overhead control.DepreciationA journal for depreciation of factory machinery is recorded monthly equal to 1/12 of the annual deprecation and is recorded against Factory overhead control. The current rate of depreciation on factory machinery is 20%.Refer to specific sections of this policy manual for additional accrual and adjusting journals.Job CostingNight Owl Bedroom Design utilises a job costing system for recording all the manufacturing costs for each customer job. The manufacturing costs for each job are recorded on a monthly Job Summary Sheet and are accumulated based on costs charged using the following cost categories:Direct materialsDirect labourFactory overheads applied (see below: Recovery of indirect costs)Each customer represents a new job. A unique job number is assigned to each customer based on the following convention: yymm00, yymm01 etc. (For example, the fourth job in January 2017 will be allocated job number 170104).Allocation of costs to customer jobsDirect MaterialsDirect materials will be allocated to customer job numbers by referring to the “Job No.” column of an authorised Material Requisition form.Direct LabourDirect labour will be allocated to customer job numbers by referring to the “Job No.” column of an authorised Time Sheet Summary.Factory overhead appliedFactory overheads are applied to customer job numbers by referring to the current policy for Factory overhead recovery.Accounting for Materials to productionMaterials from the materials store will only be issued to production when an authorised Materials Requisition Form has been supplied to the Store Manager. The materials requisition form must be issued and signed by the Factory Manager, Frank Short.The Materials Requisition form will serve as the source document for recording direct materials against Work in Progress and indirect materials against Factory Overhead Control.If materials are returned to store, a general journal must be recorded to re-instate the materials to store and based on the value stated on the signed Materials Returned form.Recovery of indirect costsIndirect costs are to be recorded via journal entry against Factory overhead applied each month. Recovery of these costs, and subsequent charging against customer jobs, will be calculated using the following Factory Overhead recovery rate:150% of Direct Labour CostThe value of direct labour cost for each job can be obtained from the Job Summary Sheet.Under/overapplied overheadsUnder or overapplied overheads is to be calculated and written off against Cost of Goods Sold each month via general journal.PayrollAll staff are employed full-time and work a 38-hour week from Monday to Friday, plus overtime as required. Over-time is paid at time-and-a-half. Weekend work is generally not required and can only be worked upon approval of the business owner.Factory management, sales and service staff are paid an annual salary. These staff members are entitled to annual leave loading but are not entitled to overtime.Factory workers are paid monthly, at the end of the month.Where applicable staff are paid based on the current award. The award under which they are paid must be clearly indicated on each individual personal file.EntitlementsAnnual leaveEach full-time staff member is entitled to 4 weeks (152 hours) paid annual leave, plus 17.5% leave loading per annum.Personal leaveEach full-time staff member is entitled to 2 weeks (76 hours) of personal leave with pay per annum.Recording payroll – factory staffEach staff member must complete a weekly timesheet. The timesheet must indicate the hours worked, any leave taken and, where applicable, jobs they have worked on.The weekly timesheets are summarised by the business owner on a monthly Time Sheet Summary. The time sheet summary is the basis for payment to staff. Night Owl Bedroom Design uses a payroll clearing account for payment of staff wages.Gross monthly staff pay is recorded against Labour control.The accountant is responsible for classifying factory wages into direct and indirect labour (refer to Terms and Definitions above for clarification of direct and indirect costs).Once the monthly wages have been classified into direct and indirect labour, the Labour control account is to be cleared, and Direct labour charged to Work in Progress, as well as being charged to each customer job as appropriate. Indirect labour is charged to Factory Overhead control.Annual leave accrualTo smooth out the cost of annual leave for the year, a monthly accrual for the provision of annual leave is to be recorded. The amount recorded must equal 1/12 of the annual cost of annual leave.The annual leave provision is reduced by any leave taken during the month and must be recorded in a general journal separate to the monthly annual leave provision stated above.OvertimeFactory workers are entitled to overtime pay at time-and-a-half (i.e. 1.5 times their normal rate of pay). Company policy regarding the treatment of overtime is as follows:Overtime hours worked is direct labourOvertime premium is indirect labourInvoicing customers for completed jobsThe mark-up applied to the cost of completed jobs is 50%. The cost of completed jobs is accumulated on the Job Summary Sheet.All sales are on credit.Additional end of month proceduresReconciliation of ledgers to jobsThe assistant accountant is required to reconcile the balance of the Work in Progress account at the end of the month to the total value of incomplete jobs as per the job card summary.The assistant accountant is required to reconcile the value of the Finished Goods account to the value of any completed jobs that have not been invoiced as per the job card summary.ReportingThe assistant accountant is required to Makea monthly Trading Statement. The report must be prepared using the authorised template and indicate the net profit or loss for each completed and invoiced job and in total, before adjusting for over/under applied factory overheads, for the month. The total gross profit must also be adjusted for over/under applied overheads to indicate the adjusted gross profit on sales for the month. Trading statementNightowl Bedroom Design Trading statement for the Month of Jobs: Total Sales less COGS LESS
