Part-ll. System of Accounting for Costs: Following further information are also available: Inventories as on June 30, 2019: we nnn Materials... he oe Rs. 2,500 = Work in process Rs. 10,000 . Finished goods ss 7 ts 1 wa ce of Rs.1,480 representing the . 3 Ra ee ee 7480 ind factory overhead cost applied to woe the rate of 100% of direct labour cost of Rs.16,000. The variance was analyzed and it Has Gdn tb be due to incorrect overhead applicstion rate. ‘This: Vana be charged to the entire production of the period. of Goods Mar normal ar ured and Sold on June 30, Required: (c) Statement of C 2019 showing th June 30, 2019 and @) Profit & Lo: for the yea ' Balance SI | See ures: CA et profit Rs. 16,500, lance sheet Rs.182,120 a4 s qi ibove exercise) | nS} 5-6. Changes in Inventory. Follow 10 operations of Al-Qadir Industrial Works for the year ended December x | Purchase of materials : Rs. 473,300 j urshases returns Rs. 3,300 ice. ae Inventories: : Rs. 30 Materials inventory, January 1, 20xx Materials inventory, December 31, 20xx eae ae Work in process inventory increased by...... a 7 Finished goods inventory decreased by Ste ee Re 2a a | Required: Prepare cost of good manufactured and sold statement. es Check figures: CG, & igures- C.G.S, Rs.1,400,000 a Pee (lust Aine cia | tration S-Sis related to above exercise) / 7. Changes in Inventory. Al-Mugtadir M i Boa relating to its operations from fas 1 ee Concern: pgfan ‘Changes in inventory: : ' Finished goods decreased by. Work in process decreased by ‘Raw materials increased by..Raw materials purchased ... Purchases returns and allowances. Purchase discounts te Transportation in .. Rs. Direct labour cost. Rs. Manufacturing overhead... = Required: From the above information compute the following: (@) Total current manufacturing cost (b) Cost of goods manufactured. (©) Cost of goods sold. 473,300 15,300 8,700 17,700 316,300 141,100 Check figures: (a) Rs.900,000 (b) Rs.940,000 -(c) Rs.1,000,000. (Illustration 5-5 is related to above exercise) 8. Cost of Goods Sold Statement, Inventories of FOH Items. Accounting data of Al- Wajid Industry show following inventory balances at the beginning and at the end of its accounting year: Inventories Beginning Finished goods Rs. 23,800 Rs, Work in process Rs. 17,000 Rs. Materials Rs. 10,200 Rs, Loose tools Reis Rs. Factory supplies Rs. 1,360 Rs Purchases for the year are as under: Materials . J a 4 . ereeeens Rs. L00S¢ toOls ..ovovctcresnsronen ited ieee Rs. Rs. Factory supplies Other data related to the Direct labour Indirect labour... Electricity bill of factory Rent of factory building Factory office salaries Depreciation of plant . Carriage inward. Interest on loan.. Advertising. uired: Cost of Sold Stat ement. Check figures: C.G: (Illustration 5-6 is related to, Mfa. Rs-480,050, CGSR Ending 18,850 400 500 2,040 2,340 224,400 6,800 10,200 81,600 16,600. 61,250 - 54,400 10,800 <— 15,000(190) Part. System of Accounting for Costs: Inventories 5-9, Cost of Goods Sold Statement, Inver of FOH Items. ‘Al-Majid Indu the month of. ee collects following data relating to its operation. ; F cca 53,000 79,500 5,600 Inventofies at January 1, 20. Raw materials Work in process Fuel... ‘i - Factory repair parts... Finished goods . 477,000 2 Purchases of raw material..... s z 65400 Purchases of fuel hone canbe Direct labor ‘ eas Miscellaneous factory overhead .. Repairs to factory (including purchase of parts) Depreciation of plant Superintendence. Transportation out... Purchase discount lost Indirect factory labor 842,400 Inventories at January 31, 20__ Raw materials 73,500 Work in process 59,000 Fuel ar 7950 Factory repair p: ‘i Finished goods ae 1,282,900_ Required: Prepare Statement of Cost of Goods Sold in proper form. Check, figures: C.G.Mfd. Rs.821,500, CGS. Rs 800,000 (illustration 5-6 is related to above exercise) Seis Three Work in Process Accounts, summarize factory operations of Al-Kabee! Inventories: Calculation of Unit Cos i T Industry for the month eo sarchaa on March March 30 Rs. 21,000 Rs. 18,500 Work in process ---Factory overhead sn ae vada . Re 13,300 goods 40,000Assembling department @ Rs.40 per direct labour hour Finishing department @ Rs.60 per direct labour hour Required: & eat a cost of goods manufactured and sold statement for the month. (b) The factory produced 14,500 units during the month. Caleulate unit ~— cost of materials, labour and factory overhead for the production of March 20__ Material. 6.51 Check figur Mat. purchased Rs.90,000, C.G.S. Rs.300,000, Unit cost of Unit Cost of Labour Rs.8.50, Unit cost of F.0.H Rs. 5 (Illustration 5-7 is related to above exercise) a Three Work in Process Accounts, Chiculation of Unit Cost. During the month OfApril Al-Khabeer Industry put into process raw materials worth Rs.90,000. Direct Tabour hours in Mixing Department totaled 1,000 at a cost of Rs.60,000 and direct fabour hours in Finishing Department totaled 400 at a cost of Rs.120 per hour. Factory lovethead is applied at a rate of R.36 per direct labour hour in the Mixing Department land Rs.72 per direct labor hour in the Finishing Department, Inventories April April 30 Materials «0.0.00. re Rs. 28,800 Rs. 32,400 Materials in process Rs. 10,800 Rs. 12,000 | Labour in process......... Rs. 14,400 Rs, | 9,600 Factory overhead in proces: Rs. 9,600 Rs. 7,200 Finished goods ........-:sesvse- . Rs, 19,200 Rs. .24,000 em Industry produced 6,000 units of product during the month, quired: A schedule showing cost of work put in process, cost of goods ‘Manufactured and cost of goods sold. Also find out unit cost of tnaterials, labour and overhead for production during April ‘ck figures: Materials purchased Rs.93,600, C.G.S. Rs.264,000, Unit cost as Rs, 14,80, Unit Cost of Labour Rs.18.80, Unit cost of F.O.H Rs. 1130 a (Illustration 5-7 is related t0 above ex. :(ss) Part-ll, System of ‘Accounting for Costs. May 1 May 31 Rs. Rs. Inventories: _ 252,900 385,200 Materials .... 572,400 550,800 * Work in process 242,550 ? Finished goods...... a Other information: eves 3,582,000 Materials purchased «esses eens anaes Te Direct labour... oe 63,000 NM Be aR Sa asia ici nalbaic cts tonne ioctl Purchase discount ie meee me Factory overhéad is applied at the rate of 50% of direct labour cost s Finished goods inventory on 1% May 63 units and on 31° May 36 units (all from current month, 2,835 units at Rs.4,300 per unit. month’s production). Sales during t Number of units Cost of goods manufactured. Cost per unit manufactured. Cost of finished goods inventory on 31° May Cost of goods soll. Gross profit — total and per unit Check figures: (1) 2,808 units, (2) Rs. (5) Rs.7, Required: DUaYRE 800, (3) Rs.2,725 (4) Rs. 98,100, 96,250, (6) Rs.4,394,500 & Rs.1,550. Mllustrations 5-8, 5-9 & 5:10 are related to above exercise) bas, Calculation of Units Manufactured and Cost of G Following information are taken from the books and records Lae penal for the month ended June 30, 20__: Azeem Industry 4 Units Cost 1,000 2 Sales during the year Opening inventories: Work in process » Finished goods .. Closing inventories:Chapter, Financial Statements. 193 juction manager of the company has submi ; ? 4 ‘i mitted the fol ost estimate for closing work in process inventory: lowing c Direct materials cost ’ Rs.8,100 Direct labour cost........ 3 Rs.3,600 "The company’s past experience showed that factory overhead cost tends to fluctuate © closely itt proportion to direct labour cost. Required: 1. Determine number of units manufactured during the month Complete the production manager's estimate of the cost of work in process. 3. Prepare a manufacturing statement for the month. 4. Determine cost of each unit manufactured during the month. 5. Assume that the first cost recorded in the finished goods account is the first costs to be credited to the account. Determine ending inventory of 6. Calculate cost of goods Check fi 400 (3) C.G.Mfa. Rs.201,600 210 (5) Rs.50,400 (6) Rs.183.600 elated to above exercise) ‘ated Cost of Work in Process Inventory. On May 31, 2019 Al-Hakeem Pharmacy had a fire. As a result, processing building and work in Process inventory was completely destroyed, but fire brigade successfully saved ¢ eerermom, J) Afirthe fire a physical inventory was taken. Raw materials were valued at Rs.65,000, finished goods at Rs.105,000 and supplies at Rs.10,000, | Inventories on January 1, 2019 consisted of: Raw materials. 7 Rs. 40,000 Rs. 75,000 Rs,120,000 Rs._8,000_ Rs.243,000 eview of accounts showed that sales and gross profit for the last five years were: Sales Gross Profit Rs.1,360,000 Rs.1,440,000