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Workbook CGS # 9.1: Test your understanding 1. Ascertain Cost of Goods Sold from the followingzaheerswati@ciit.net.pk 108 CGS (Unsolved) " id="pdf-obj-0-2" src="pdf-obj-0-2.jpg">

Workbook

CGS # 9.1: Test your understanding

  • 1. Ascertain Cost of Goods Sold from the following figures:

Unit 9
Unit 9

Opening Inventory / Stock

Rs. 3,700

Purchases

20,800

Closing Inventory / Stock

2,500

CGS = OI + P - CI

  • 2. Ascertain Cost of Goods Sold from the following figures:

 

Opening Stock

Rs. 8,500

Purchases

30,700

Direct Expenses

4,800

Indirect Expenses

5,200

Closing Inventory

9,000

CGS = OS + P + DE - CI

  • 3. Ascertain Purchases from the following figures:

Cost of Goods Sold

Rs. 80,700

Opening Stock

5,800

Closing Stock

6,000

Purchases = CGS – OS + CS

  • 4. Calculate Gross Profit from the following figures:

Cost of Goods Sold

Rs. 70,800

Sales

130,200

GP = Sales - CGS

  • 5. Ascertain Gross Profit from the following figures:

 

Opening Inventory

Rs. 5,570

Purchases

13,816

Sales

15,284

Purchase Return

390

Return Inward

524

Closing Stock

8,880

GP = Net Sales + CS – OI – Net Purchases

  • 6. From the following information extract Gross Profit and Net Profit:

 

Beginning Inventory

Rs. 2,400

Carriage in

Rs. 524

Purchases

15,205

Wages

2,800

Sales

20,860

Wages Outstanding

96

Return Outward

185

Loss by fire

1,000

Return Inward

860

Indirect Expenses

200

Closing Inventory

3,840

GP = Net Sales + CI – BI – Net Purchase - Direct Expenses NP = GP – Indirect (other than Direct Expenses)

108
108
Workbook CGS # 9.1: Test your understanding 1. Ascertain Cost of Goods Sold from the followingzaheerswati@ciit.net.pk 108 CGS (Unsolved) " id="pdf-obj-0-238" src="pdf-obj-0-238.jpg">

CGS (Unsolved)

Workbook CGS # 9.2: Test your understanding Unit 9 1. Ascertain Cost of Goods Sold fromzaheerswati@ciit.net.pk 108 CGS (Unsolved) " id="pdf-obj-1-2" src="pdf-obj-1-2.jpg">

Workbook

CGS # 9.2: Test your understanding

Unit 9
Unit 9
 

1.

Ascertain Cost of Goods Sold from the following figures:

 

Opening Stock

Rs. 15,000

Purchases

5,000

Closing Stock

7,000

Cost of Goods Sold

 

2.

Ascertain Gross Profit / Loss form the following figures:

Opening Inventory

 

Rs. 12,000

 

Net Purchases

7,500

Sales

14,000

Closing Stock

1,500

Return Inward

2,500

Gross Loss

 

3.

Ascertain Purchases from the following figures:

 

Cost of Sales

Rs. 90,000

 

Beginning Inventory

 

15,000

 

Ending Inventory

7,000

Purchases

 

4.

From the following information extract Gross Profit and Net Profit:

Opening Inventory

 

Rs. 3,000

 

Purchases

14,000

Sales

22,000

 

Closing Inventory

 

5,500

 

Sales Return

1,500

 

Wages and Salaries

 

500

Financial Charges

 

1,500

 

Carriage Inward

150

 

Salaries Outstanding

 

400

Carriage Outward

 

100

 

Gross Profit

Net Profit

CGS # 9.3: Test your understanding

 
 

1. Ascertain Cost of Goods Sold from the following figures:

 

Opening Stock

Rs. 17,000

Purchases

4,000

Closing Stock

2,500

Cost of Goods Sold

108
108

CGS (Unsolved)

Workbook Unit 9

Workbook

Unit 9
Unit 9
 

2.

Ascertain Gross Profit / Loss form the following figures:

Opening Inventory

Rs. 8,000

 

Net Purchases

9,500

Sales

27,000

Closing Stock

5,000

Return Inward

4,500

Gross Profit

 

3.

Ascertain Purchases from the following figures:

 

Cost of Sales

Rs. 110,000

 

Beginning Inventory

45,000

 

Ending Inventory

26,000

Purchases

 

4.

From the following information extract Gross Profit and Net Profit:

Opening Inventory

Rs. 5,500

 

Purchases

7,000

Sales

33,000

 

Closing Inventory

7,500

 

Sales Return

2,000

 

Wages and Salaries

1,500

Financial Charges

2,500

 

Carriage Inward

150

 

Wages Outstanding

400

Carriage Outward

100

 

Gross Profit

Net Profit

108
108

CGS (Unsolved)

Workbook Unit 9 CGS # 9.4: The following are the figures relating to the YYY Commodityzaheerswati@ciit.net.pk 108 CGS (Unsolved) " id="pdf-obj-3-2" src="pdf-obj-3-2.jpg">

Workbook

Unit 9
Unit 9

CGS # 9.4: The following are the figures relating to the YYY Commodity Production for the month of March, 2010.

Description

Amount

Description

Amount

Stock on 1.03.2010_ Raw Material

Rs. 75,000

Stock on 31.03.2010_ Raw Material

Rs. 50,000

Factory overheads

8,000

Sales

270,000

Purchases of Raw Material

100,000

Wages on Purchases

5,000

Stock on 1.03.2010_ Finished Goods

48,000

Stock on 31.03.2010_ Finished Goods

25,000

Direct Labor

12,000

Office & Admin Overhead

3,000

Return inward

10,000

Marketing Expenses

15,000

Work in process on 1.03.2010

5,000

Work in process on 31.03.2010

3,000

Requirement: Prepare statement showing Prime Cost; Conversion Cost; Total Cost; Cost of Goods Manufactured; Cost of Goods Sold. Calculate Gross Profit; Net Profit and per unit cost by assuming that 38,000 units were produced during March.

YYY Commodity Production

Cost of Goods Sold Statement

For the month ended March, 2010

Workbook Unit 9 CGS # 9.4: The following are the figures relating to the YYY Commodityzaheerswati@ciit.net.pk 108 CGS (Unsolved) " id="pdf-obj-3-116" src="pdf-obj-3-116.jpg">

Gross Profit = Net Profit = Per Unit Cost = Conversion Cost =

108
108

CGS (Unsolved)

Workbook CGS # 9.5: These data relate to Zakar Co.'s July 2009 operations: Unit 9 Materials,zaheerswati@ciit.net.pk 108 CGS (Unsolved) " id="pdf-obj-4-2" src="pdf-obj-4-2.jpg">

Workbook

CGS # 9.5: These data relate to Zakar Co.'s July 2009 operations:

Unit 9
Unit 9

Materials, Beginning ………………

..

……

Rs. 7,000

Materials, Ending ………………

..

………

Rs. 9,000

WIP, Beginning ……………………………. 7,500

WIP, Ending ………………………………. 3,500

Finished goods, Beginning …………………

10,000

Finished goods, Ending ……………………

12,000

Materials used ………………………………

46,800

Direct Expenses ……………………….……

400

Selling and general expenses ……………….

6,700

Direct Labour ………………………………

8,000

Factory overhead is applied at the rate of 80% of direct labor cost.

Requirement:

Cost of materials purchased, Cost of goods manufactured, Cost of goods sold and Conversion Cost.

Zakar Company

Cost of Goods Sold Statement

For the Ended July, 2009

Cost of Goods Sold Rs. 63,200
Cost of Goods Sold
Rs. 63,200

Conversion Cost =

108
108

CGS (Unsolved)

Workbook Unit 9 CGS # 9.6: Following are data Extracted from Star Pvt. Ltd. at thezaheerswati@ciit.net.pk Ending 108 Beginning CGS (Unsolved) " id="pdf-obj-5-2" src="pdf-obj-5-2.jpg">

Workbook

Unit 9
Unit 9

CGS # 9.6: Following are data Extracted from Star Pvt. Ltd. at the end of December 31 st , 2008.

Sales ………………………… Rs. 14,000,500

Sales Return …………………………

..

...

Rs. 25,200

Purchases (Net) ………………

2,400,000

Transportation inward ………………

32,000

Direct Labour ……………… ..

3,204,000

FOH (Total)……………………………

..

1,885,600

Sales Salaries ……………… ..

200,000

Advertising Expense …………………

155,000

Delivery Expense ……………

65,000

During the year 25,000 units were completed.

Inventories

December, 2008

January, 2008

Finished Goods ……………………………… Rs. 467,400 ………………………………. Rs. 620,000

Work in Process ……………………………

...

136,800 ……………………………….

129,800

Materials ……………………………………

..

196,000 ……………………………….

176,000

Requirements:

(1) Total Factory Cost (4) Gross Profit and Net Profit

(2) Cost of Goods Manufactured (5) Per Unit Cost of Goods Manufactured

(3) Cost of Goods Sold

Star Pvt. Ltd

Cost of Goods Sold Statement

For the Ended December, 2008

Cost of Goods Manufactured 7,494,600 Gross Profit = Net Profit = Per unit Cost of goods
Cost of Goods Manufactured
7,494,600
Gross Profit
=
Net Profit
=
Per unit Cost of goods manufactured =

CGS # 9.7: Following Data related to XYZ Manufacturing at the end of April, 2010. INVENTORIES

Ending

108
108

Beginning

CGS (Unsolved)

Workbook

Workbook

Unit 9
Unit 9

Finished Goods ………………………………………

..

95,000 ………………………………

..

……………………………….

?

Work in Process ……………………………………….

Direct Material ………………………………………

..

?

95,000 …………………………….….

70,000

90,000

Cost incurred during the period Cost of Goods Manufactured …………………………… …. ..

574,000

584,000

..

167,000

Total Manufacturing Cost ……………………………………

Factory Overhead ……………………………………………

Direct Material Used …………………………………………. 193,000

During the year 15,000 units were completed.

Requirements:

(a) Prime Cost

(b) Cost of Goods Sold

(c) Per Unit Cost

(d) Conversion Cost

XYZ Manufacturing

Cost of Goods Sold Statement

For the Ended April, 2010

Per unit Cost of goods manufactured Conversion Cost = Direct Labor + FOH = =
Per unit Cost of goods manufactured
Conversion Cost = Direct Labor + FOH
=
=

CGS # 9.8: Account Department of the ABC Co. provides the following data at end of June 2009, you are required to prepare Cost of Goods Manufactured; Cost of Goods Sold; find out Gross Profit / Loss & Net profit / Loss and Per unit Manufacturing Cost at the Year ended May 30 th , 2009, assuming that Net Sales of Rs. 72,000, Marketing Expense 5%, Advertising Expense 1 % and Other Expense 3% of Net Sales; Net Purchases Rs. 36,000 and Direct Expenses are 1 % of Net Purchases; FOH 2/3 of Direct Labor and Direct Labor cost is Rs. 15,000. Units are produced during the period was 5,000.

Beginning Inventories

Rs

108
108

Ending Inventories

Rs

CGS (Unsolved)

Workbook Finished Goods ……………………………………. Work in Process …………………………………… Material ……………………………………………. 7,000 8,000 8,000 Unit 9 …………………………………….zaheerswati@ciit.net.pk 108 CGS (Unsolved) " id="pdf-obj-7-2" src="pdf-obj-7-2.jpg">

Workbook

Finished Goods ……………………………………. Work in Process …………………………………… Material …………………………………………….

7,000

8,000

8,000

Unit 9
Unit 9

……………………………………. 10,200 …………………………………… 15,000

…………………………………….

8,500

XYZ Manufacturing

Cost of Goods Sold Statement

For the Ended June, 2009

Cost of Goods Sold Rs. 50,660
Cost of Goods Sold
Rs. 50,660

Gross Profit = Net Profit =

Per Unit Manufacturing Cost =

CGS # 9.9: Following data has been extracted from the books of City Company; you are required to prepare Cost of Goods Manufactured, Cost of Goods Sold Statement, Gross Profit / Loss and Net Profit / Loss at the end of September 30 th , 2009.

Stock of Raw Material (Opening)

25,000

Electricity Expense

600

Freight Inward

8,500

Selling Expenses

6,000

Freight outward

6,000

Miscellaneous Expenses

14,000

Wages

18,000

Stock of Raw Material (Closing)

2,000

108
108

CGS (Unsolved)

Unit 9 Workbook Sales FOH Return inward Return Outward Factory Fuel and Power Work in Process
Unit 9
Workbook
Sales
FOH
Return inward
Return Outward
Factory Fuel and Power
Work in Process (Opening)
Work in Process (Closing)
Repairs to Office building
418,000
Stock of Finished Goods:
26,000
5,000
3,500
8,000
7,000
4,000
4,650
Opening
Closing
Provision for Doubtful Debts
Depreciation
Purchases of Raw Material
Bank Interest Received
Direct Labor Cost
30,000
40,000
8,500
4,000
250,000
2,600
16,000
City Company
Cost of Goods Sold Statement
For the Ended September, 2009
Prime Cost
320,000
Cost of Goods Manufactured
349,000
Cost of Goods Sold
Rs. 339,000
Gross Profit
=
Net Profit / Loss
=
zaheerswati@ciit.net.pk
CGS (Unsolved)
108
Workbook Unit 9 CGS # 9.10: Following data has been extracted from the books of AAA

Workbook

Unit 9
Unit 9

CGS # 9.10: Following data has been extracted from the books of AAA Wood Company; you are required to prepare Cost of Goods Sold Statement, Gross Profit / Loss and Net Profit / Loss at the end of June 30 th , 2008.

Cash

810

Account Receivable

1,878

Allowance for doubtful accounts

90

Direct Material Inventory, July 01, 2007

375

Work-in-process, July 01, 2007

450

Finished goods, July 01, 2007

333

Carriage inward

54

Factory Equipments

5,880

Accumulated Depreciation _ Factory Equipment

1,695

Office Equipment

1,842

Accumulated Depreciation _ Office Equipment

738

Account Payable

1,113

Miscellaneous Expenses Payable

366

Capital

7,167

Net Sales

16,290

Net Purchases

3,201

Direct Labor

4,605

Factory Overheads

3,687

Selling Expenses

2,616

Administrative Expense

978

Income Tax

750

Total

Rs. 27,459

Rs. 27,459

Inventory on June 30 th , 2008 are

Direct Material Inventory Rs. 453; Work-in- Process Inventory Rs. 294 and Finished Goods Inventory Rs. 402

AAA Wood Company

Cost of Goods Sold Statement

For the Ended June, 2008

zaheerswati@ciit.net.pk CGS (Unsolved) 108
zaheerswati@ciit.net.pk
CGS (Unsolved)
108
Unit 9 Workbook Gross Profit = Net Profit =
Unit 9
Workbook
Gross Profit
=
Net Profit
=
108
108

CGS (Unsolved)