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  • MC 100206263

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    Weighted Average Method. Model Manufacturing Company Cost of Production Report Quantity Schedule. Unit Received Unit put in process Unit complet and transfer Unit of closing Work in process 2500 Unit complete and transfer 5000 Unit loss abnormal 600 Unit loss normal 400 Cost Aculamlated Deptt Direct Material 8000+22000 = 30000 Direct Labor FOH Cost Equivalent production Material Completed Units 5000 Cloesing WIP 2500 Losses 1000 Total 8500 Cost per unit.

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    Weighted Average Method. Model Manufacturing Company Cost of Production Report Quantity Schedule. Unit Received Unit put in process Unit complet and transfer Unit of closing Work in process 2500 Unit complete and transfer 5000 Unit loss abnormal 600 Unit loss normal 400 Cost Aculamlated Deptt Direct Material 8000+22000 = 30000 Direct Labor FOH Cost Equivalent production Material Completed Units 5000 Cloesing WIP 2500 Losses 1000 Total 8500 Cost per unit.

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    5 views4 pages

    MC 100206263

    Uploaded by

    Muhammad Jamshaid
    Weighted Average Method. Model Manufacturing Company Cost of Production Report Quantity Schedule. Unit Received Unit put in process Unit complet and transfer Unit of closing Work in process 2500 Unit complete and transfer 5000 Unit loss abnormal 600 Unit loss normal 400 Cost Aculamlated Deptt Direct Material 8000+22000 = 30000 Direct Labor FOH Cost Equivalent production Material Completed Units 5000 Cloesing WIP 2500 Losses 1000 Total 8500 Cost per unit.

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    of 4

    Q.No 1. Weighted Average Method.

    Model Manufacturing Company


    Cost of Production Report
    Quantity Schedule.
    Unit Received

    1500

    Unit put in process


    Unit complet and transfer

    7000
    8500

    Unit of closeing Work in process 2500


    Unit complete and transfer
    5000
    Unit loss abnormal
    600
    Unit loss normal
    400
    Cost Aculamlated Deptt
    Direct Material
    8000+22000 = 30000

    Direct Labor
    FOH

    5450+9000 = 14450
    2790+4000 = 6790

    Cost Equivalent production


    Material
    Completed Units
    5000
    Cloesing WIP
    2500
    Losses
    1000
    Total
    8500

    Labor
    5000/45%
    1125
    6125

    Cost per Unit.


    Direct Material
    Direct Labor
    FOH
    40%remaining =
    45% remaing
    25%

    8000 +22000
    5450 +9000
    2790 +4000

    16240

    35000

    = 30000
    = 14450
    = 6790
    3200
    6452
    4697
    65975

    FOH
    5000/45%
    1125
    6125

    (2) FIFO Cost Method

    Unit Received
    Unit put in process
    Unit complet and transfer

    1500
    7000
    8500

    Cost Incurred During Deptt.


    Direct Material
    8000
    Labor
    5450
    FoH
    2790
    16240
    Cost Incurred Work in process
    Direct Material
    22000
    Labor
    9000
    FoH
    4000
    35000

    Cost Incurred During Deptt 16240


    Cost Incurred Work in process 35000
    51240
    Cost Equivalent Production
    Material 300
    1500
    Labor
    825

    1500
    825

    Accounting Treatment
    Opening WIP
    16240
    Material
    1500 x4.4
    = 6600
    Labor
    1500x 3.6
    = 5400
    FOH
    1500 x 1.6 = 2400

    20600

    30640
    51240

    Q. No 2.Joint Product & By Product.

    Hypothetical Company manufactures


    Month of November 2011
    (i)
    Physical Quantity ratio method.
    Company manufactures Rs.16300 units
    Cost Incurred
    Rs. 16790
    19790/16300 x 5542
    5708.59
    16790/16300 x 4564
    4701.19
    16790/16300 x 3097
    3190.09
    16790/16300 x 1956
    2014.78
    16790/16300 x 1141
    1175.28

    (ii)
    Unit Price
    4
    3
    2
    6

    Selling Price method.


    x
    Unit Sold=
    x
    5542
    x
    4564
    x
    3097
    x
    1956

    1141

    = 22168
    = 13692
    = 6194
    = 11736

    = 5705
    59495
    (16790/59495) x 22168
    =6256
    (16790/59495) x 13692
    =3864
    (16790/59495) x 6194
    =1748
    (16790/59495) x 11736
    =3312
    (16790/59495) x 5705
    =1610
    16790
    (iii)
    Hypothetical market value method.

    16790

    Prod
    A
    B
    C
    D
    E

    Unit sold
    5542
    4564
    3097
    1956
    1141

    Further Cost
    1.1
    0.9
    0.6
    1.5
    1.3

    P/U sale price Market Value


    4
    2.9
    3
    2.1
    2
    1.4
    6
    4.5
    5
    3.7

    Hypothetical
    42
    31
    16.91
    66.63
    54.78
    14.6

    Dived to all on 16300 and multiply with total market value and market value
    Calculations.
    16300/16071.8x14.6x2.9= 42
    16300/16071.8x14.6x2.1= 31
    16300/16071.8x14.6x1.4= 16.91
    16300/16071.8x14.6x4.5= 66.63

    16300/16071.8x14.6x3.7= 54.78

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