Date: Mar 14, 2021 Class: ___________

Course Name: Cost Accounting Assignment: No.1

Semester: Spring 2021 Submission Date: Mar 25, 2021
Instructions: 
 Submit within due date.
 Submission on Email is not acceptable
 Mention your Name, Std. ID, class and course name on the first page of solution.
 All questions are compulsory. 
 Show all necessary calculation.
 Submit soft copy in any form like word, hand written image or scan file, (Must be a single file)

Problem number 1

The following data were taken from the cost records:

Depreciation, factory 7000
Indirect labor 11000
Utilities, factory 5000
Insurance factory 1500
Lubricants for machines 1000
Direct Labor 21000
Purchases of raw materials 16000
Depreciation, Office furniture 700
Inventories at the beginning and end of the year were as follows:
  1-Jan 31-Dec
Raw materials 1500 2500
Work in process 3000 1000
Finished goods 4000 6000

Sales recorded during the year amounted Rs. 7,7000.

Required:
a. Prepare a Statement of Cost of Goods Manufactured for the year.
b. Prepare a statement of Cost of Goods Sold for the year and calculate Gross profit.
Problem number 2
The information below has been taken from the cost records of H Company for the past year:
Direct materials used Rs.1,250
Total manufacturing costs 6,050
Manufacturing overhead 2,800
Selling expenses 1,000
Prime Cost 270% of Purchases
Direct materials inventory, January 1 130
Direct materials inventory, December 31 80
Work in process, January 1 250
Work in process, December 31 400
Finished goods, January 1 300

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 Finished goods, December 31 200

Required:
a. Compute the cost of Raw Material purchased.
b. Compute the cost of direct labor for the year.
c. Compute the Cost of Goods Manufactured for the year.
d. Compute the Cost of Goods Sold for the year.

Problem Number 3:

The following data relates to the Aahil & co. for the month of June 2013. Company using job order costing
system
Job Numbers Direct Material Direct Labor
1 30000 50000
2 20000 40000
3 30000 25000
4 15000 10000
FOH applied 80% of the direct labor to each.
Job No. 1, 2 and Job No. 3 were completed.
Job No. 2 was sold 45% above the cost.
Required: Calculate the following requirements.
a. COGM. d. FG ending.
b. WIP ending. e. Gross profit.
c. COGS. f. Selling price.
Problem Number 4:

An outfit producer had the following transactions in its first month of processes relating to its only job, Job #A
012.
a) Purchased 500 yards of silk @ Rs.8 per yard for cash.
b) Requisitioned 300 yards of silk to produce Job #A 012.
c) Incurred 50 hours of direct labor to produce Job #A 012; the average labor rate is Rs.9 per hour.
d) Paid various factory overhead costs, Rs.650.
e) Applied factory overhead at the rate of 145% of direct Material costs to Job #A 012.
f) Completed Job #A 012.
g) Sold Job #A 012, receiving cash of Rs.4,400.
Required:
1. Record the above transactions in journal and close the FOH A/C
2. Enter the transactions in the T-accounts below.
3. Determine the ending balance of each account.
4. What was the gross profit earned on Job #A 012

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