On 1st Jan 2018 Tata Infosis.Co.Ltd purchased a machinery for Rs 3,00,000. On 1st July 2020 a part of
this machine purchased on 1st Jan 2018 for Rs 50,000 was sold for Rs 23000 and on the same date new machine was purchased for Rs 80,000. The rate of depreciation to be charged was 10 % on original cost
of machinery Prepare machinery and machinery disposal account assuming provision for depreciation account is
maintained.
Answers
Answer:
From the details furnished below you are required to compute a comprehensive machine-hour rate :
Original purchase price of the machine
3,24,000
(subject to depreciation at 10% per annum on original cost)
Normal working hours for the month
200 hours
(The machine works to only 75% of capacity)
Wages of Machine man
*125 per day (of 8 hours)
Wages for Helper (machine attendant)
*75 per day (of 8 hours)
Power cost for the month for the time worked
15,000
Supervision charges apportioned for the machine centre for the month 3,000
Electricity & Lighting for the month
* 7,500
Repairs & maintenance (machine) including
Consumable stores per month
17,500
Insurance of Plant & Building (apportioned) for the year
16,250
Other general expense per annum
27,500
The workers are paid a fixed Dearness allowance of 1,575 per month. Production bonus payable to
workers in terms of an award is equal to 33.33% of basic wages and dearness allowance. Add 10% of
the basic wage and dearness allowance against leave wages and holidays with pay to arrive at a com-
prehensive labour-wage for debit to production.
From the details furnished below you are required to compute a comprehensive machine-hour rate :
Original purchase price of the machine
3,24,000
(subject to depreciation at 10% per annum on original cost)
Normal working hours for the month
200 hours
(The machine works to only 75% of capacity)
Wages of Machine man
*125 per day (of 8 hours)
Wages for Helper (machine attendant)
*75 per day (of 8 hours)
Power cost for the month for the time worked
15,000
Supervision charges apportioned for the machine centre for the month 3,000
Electricity & Lighting for the month
* 7,500
Repairs & maintenance (machine) including
Consumable stores per month
17,500
Insurance of Plant & Building (apportioned) for the year
16,250
Other general expense per annum
27,500
The workers are paid a fixed Dearness allowance of 1,575 per month. Production bonus payable to
workers in terms of an award is equal to 33.33% of basic wages and dearness allowance. Add 10% of
the basic wage and dearness allowance against leave wages and holidays with pay to arrive at a com-
prehensive labour-wage for debit to production.
please call me now bro+91 98215 27875
Explanation:
From the details furnished below you are required to compute a comprehensive machine-hour rate :
Original purchase price of the machine
3,24,000
(subject to depreciation at 10% per annum on original cost)
Normal working hours for the month
200 hours
(The machine works to only 75% of capacity)
Wages of Machine man
*125 per day (of 8 hours)
Wages for Helper (machine attendant)
*75 per day (of 8 hours)
Power cost for the month for the time worked
15,000
Supervision charges apportioned for the machine centre for the month 3,000
Electricity & Lighting for the month
* 7,500
Repairs & maintenance (machine) including
Consumable stores per month
17,500
Insurance of Plant & Building (apportioned) for the year
16,250
Other general expense per annum
27,500
The workers are paid a fixed Dearness allowance of 1,575 per month. Production bonus payable to
workers in terms of an award is equal to 33.33% of basic wages and dearness allowance. Add 10% of
the basic wage and dearness allowance against leave wages and holidays with pay to arrive at a com-
prehensive labour-wage for debit to production.
From the details furnished below you are required to compute a comprehensive machine-hour rate :
Original purchase price of the machine
3,24,000
(subject to depreciation at 10% per annum on original cost)
Normal working hours for the month
200 hours
(The machine works to only 75% of capacity)
Wages of Machine man
*125 per day (of 8 hours)
Wages for Helper (machine attendant)
*75 per day (of 8 hours)
Power cost for the month for the time worked
15,000
Supervision charges apportioned for the machine centre for the month 3,000
Electricity & Lighting for the month
* 7,500
Repairs & maintenance (machine) including
Consumable stores per month
17,500
Insurance of Plant & Building (apportioned) for the year
16,250
Other general expense per annum
27,500
The workers are paid a fixed Dearness allowance of 1,575 per month. Production bonus payable to
workers in terms of an award is equal to 33.33% of basic wages and dearness allowance. Add 10% of
the basic wage and dearness allowance against leave wages and holidays with pay to arrive at a com-
prehensive labour-wage for debit to production.
please call me now bro+91 98215 27875
