Carlton Speciality PLC is a small family owned firm that manufactures custom made furniture and uses job costing system. The company does not have computerised system and thus maintains all accounting records on hard copies that are stored in the accounting office area. Overhead is applied using a predetermined rate that is set at the start of the year based on budgeted figures. The cost driver used for overhead cost allocation is direct labour hours. Labour cost is computed based on average pay rate per labour hour. On August 1, the company sustained a minor fire accident that affected the accounting office area and burnt some accounting record files.
Required:
1. Prepare a combined schedule of cost of good manufactured and cost of sold statement for the month of July 2016. Show computations pertaining to the missing values for raw materials and WIP control accounts.
2. Prepare an income statement for the month of July 2016.
3. Discuss the main differences between job costing and process costing.
Hint: You are required to use proper referencing.
4. Are monthly production reports an example of periodic or perpetual inventory systems? Explain.
See attached file for complete information.
Attachment:- Assignment-question.rar