SPRING 2023 Cost Accounting : MANUFACTURING ACCOUNT

Q. NO. 01 :
On January 01, the finished goods inventory of the Manuel Company was Rs. 3,00,000. During
the year Manuel’s cost of goods manufactured was Rs. 19,00,000, sales were Rs. 20,00,000
with a 20% gross profit.

Calculate : the cost assigned to the September 31 finished goods inventory.

Q. NO. 02 :
Crowley Incorporation submits the following data for September, 2016 :
Direct labor cost Rs. 3,00,000
Cost of goods sold Rs. 11,10,000
Factory overhead is applied at the rate of 150% of direct labor cost.

Inventory accounts showed these beginning and ending balances :

September 01 September 30
Finished goods Rs. 1,50,000 Rs. 1,75,000
Work in process 96,000 1,30,000
Materials 70,000 74,000

Other data :
Marketing expenses Rs. 1,41,000
General and administrative expenses 2,29,000
Sales for the month 18,20,000

Required :
An income statement with schedule showing cost of goods manufactured and sold.

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MUHAMMAD ASIF | BAHRIA UNIVERSITY-Karachi Campus 1 of 1