Professional Documents
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MATERIAL
LABOR
OVERHEAD
TYPES OF COST
1 ON THE BASIS OF NATURE
DIRECT COST
INDIRECT COST
Prime cost
Factory Cost= Prime Cost + FOH + Opening stock of Work in Process - Closing s
15000
10000
Process - Closing stock of work in process
FINISHED GOODS
PRODUCTION UN
PRODUCTION UNIT
Marking Scheme for Summer 2020
First Hourly
10 marks LMS based quiz One week before hourly week
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Second Hourly
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Final Exam
15 marks LMS based quiz One week before final exam
15 marks LMS based quiz Final exam week
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LBR
RAW MATERIAL
Fllowing are the information provided by ABC Company
Find
Prime Cost
Direct material used
Conversion cost
Cost put into process
Cost of goods manufactured
WORK IN PROGRESS
MATERIAL
LBR
FOH
FINIDHED GOODS
Direct material used 274,000.00
Direct Labor 100,000.00
PRIME COST 374,000.00
FOH 101,000.00 4
CONVERSION COST 475,000.00
WIP OP 14,000.00
COG READY FOR PROD 489,000.00
WIP CLOSING -13000
COST OF GOODS MANUFACTURED 476,000.00
WORK IN PROGRESS
FINIDHED GOODS
STATEMENT OF COST OF GOODS SOLD
INCOME STATEMENT
SALES 1,100,000.00
Less Sales Return (2,200.00)
Less Sales Discount (1,300.00)
NET SALES
Less COGS
GROSS PROFIT
Interest Income
LESS SGA EXPENSES
Less Administrative Salaries 108,000.00
Bad Debt expense 2,500.00
Advertising exp 8,400.00
Total SGA Expenses
EBIT
lESS Interest EXPENSE
EBT
OLD
387,800.00
180,000.00
567,800.00
222,500.00
790,300
84,000
874,300
-30,000
844,300
37,500.00
881,800.00
(70,000.00)
811800
1,096,500.00
(811,800.00)
284,700.00
1,000.00
(118,900.00)
166,800.00
(1,500.00)
165,300.00
Prepare StatementCost of Goods manufactured
Statement of Cost of Doods Sold
Income Statement
3 Issued raw material to Factory of Rs. 120,000 including indirect material of Rs. 20,000
FOH
R. Mat used
Cash
FOH Applied
5 FOH 20000
Raw Material 20000 CORRECT
6 FOH 40000
Cash 40000
100,000
80000
55,000
FOH
20,000 60000
40000
1 Mr. Babar Started his Business with cash Rs 10,00,000
3 Issued raw material to Factory of Rs. 120,000 including indirect material of Rs. 20,000
3 FOH 20,000
R. Mat 20,000
4 WIP 99,000
Payroll 99,000
4 FOH 11,000
Payroll 11,000
5 WIP 89,100
FOH ( Applied) 89,100
6 FOH 59,000
Cash 59,000
JOB ORDER COSTING
2 Material issued for Job No 11234 Direct Rs. 200,000 and Indirect Rs. 30,000
3 Factory payroll totalling Rs. 120,000 of which Rs. 20,000 were paid to indirect labours
4 FOH applied @ 150% of Direct labour cost
5 Factory Heat anf Light charges pair Rs. 23,000
6 Other FOH paid Rs 75,000
7 Job is 100 % Complete and transferred to Finished Goods
1 Raw material 450,000.00
Cash 450,000.00
Balc bf
Balance b/d
Balc bf
TOTAL
Balance b/d
8000-1450= 6550
7600-1830 5770
5067-1220 3847
16167 IN COMPLETE GOODS
WORK IN PROCESS
0
8,000.00
7,600.00 Finished Goods
5,067.00 Material 1450
Direct Labour 1830
FOH (Applied) 1220
FOH ( APPLIED)
5067
5,067.00
TOTAL
Balance b/d
FOH ( Control)
0
2,000.00 6250
1,800.00
1,200.00
1,250.00
6,250.00
TOTAL