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The document analyzes inventory and related accounts for X Company as of December 31, 200X. It lists 25 items related to inventory, including raw materials, labor costs, transportation costs, taxes, and overheads. It also shows audit adjustments and how certain costs relate to other accounts like interest expense, input VAT, and selling/administrative expenses. The total inventory per client is $3,814,840 but after audit adjustments of $1,147,040 the audited total is $2,667,800.
The document analyzes inventory and related accounts for X Company as of December 31, 200X. It lists 25 items related to inventory, including raw materials, labor costs, transportation costs, taxes, and overheads. It also shows audit adjustments and how certain costs relate to other accounts like interest expense, input VAT, and selling/administrative expenses. The total inventory per client is $3,814,840 but after audit adjustments of $1,147,040 the audited total is $2,667,800.
The document analyzes inventory and related accounts for X Company as of December 31, 200X. It lists 25 items related to inventory, including raw materials, labor costs, transportation costs, taxes, and overheads. It also shows audit adjustments and how certain costs relate to other accounts like interest expense, input VAT, and selling/administrative expenses. The total inventory per client is $3,814,840 but after audit adjustments of $1,147,040 the audited total is $2,667,800.
Audit Per Client Adjustments Per Audit Account Title Amount Particulars Dr(Cr) Dr(Cr) Dr(Cr) Debit Credit 1 Supplier's gross price for raw materials, P150,000 150,000.00 - 150,000.00 2 Materials purchased from another supplier on extended credit amounting to P570,000. The price to 570,000.00 be paid under normal (20,000.00) credit term550,000.00 is P550,000. Interest Expense 20,000.00 3 Invoice price of raw materials purchased amounting to P180,000. Quantity discounts of 10,5 are allowed 180,000.00 by supplier. - 180,000.00 4 Materials purchased from a supplier amounting to P616,000, inclusive of 12% VAT. The company is616,000.00 VAT registered and(66,000.00) can claim this as 550,000.00 an input VAT. Input Vat 66,000.00 5 Materials purchased from a supplier amounting to P515,000, inclusive of nonrecoverable purchases 515,000.00 tax of P15,000 515,000.00 6 Costs of transporting raw materials to the business premises, P5,000. 5,000.00 5,000.00 7 Import duties paid to authorities on import of raw materials to be used during the manufacturing process, 25,000.00P25,000. 25,000.00 8 Labor costs directly incurred in the processing of raw materials, P420,000 420,000.00 420,000.00 9 Normal amount of wasted labor, P57,000. 57,000.00 57,000.00 10 Abnormal amounts of wasted labor, P69,000. 69,000.00 (69,000.00) - Other Expense 69,000.00 11 Variable costs (electricity) incurred in the processing of raw materials, P10,000. 10,000.00 10,000.00 12 Costs of transporting goods to customers on sale, P2,500. 2,500.00 (2,500.00) - Delivery Expense 2,500.00 13 Non-recoverable purchase taxes charged to customers on sale, P12,000. 12,000.00 (12,000.00) - Taxes and Licenses 12,000.00 14 Non-recoverable sales taxes, P14,440. 14,440.00 (14,440.00) - Taxes and Licenses 14,440.00 15 Commission payable to salesmen on the sale of the goods, P14,500. 14,500.00 (14,500.00) - Selling and Administrative Expense 14,500.00 16 Provisions for bad and doubtful debt in relation to trade receivables, P56,000 56,000.00 (56,000.00) - Doubtful Account Expense 56,000.00 17 Costs of the accounts department, P140,000. 140,000.00 (140,000.00) - Selling and Administrative Expense 140,000.00 18 Head office costs relating to the overall management of the business, P234,000. 234,000.00 (234,000.00) - Selling and Administrative Expense 234,000.00 19 Borrowing cost incurred on inventories that takes substantial amount of time to create, P122,000.122,000.00 122,000.00 20 Storage cost for a maturing product, P56,000. 56,000.00 56,000.00 21 Selling costs, P45,600. 45,600.00 (45,600.00) - Selling and Administrative Expense 45,600.00 22 Non-production overheads cost of designing products for specific customers, P10,000. 10,000.00 10,000.00 23 Storage cost of finished goods, P23,000. 23,000.00 (23,000.00) - Storage Cost 23,000.00 24 Fixed administration costs/ overheads (rent for office), P450,000. 450,000.00 (450,000.00) - Selling and Administrative Expense 450,000.00 25 Insurance on in transit inventories, P17,800. 17,800.00 17,800.00 3,814,840.00 (1,147,040.00) 2,667,800.00 1,147,040.00 -