PUNJAB GROUP OF COLLEGES

CHAKWAL CAMPUS
C L A S S T E S T -J A N U A R Y .2021
B.COM
Class Subject COST A/C Date 04-01-2021
II
T.M 20 Time: 35 MIN Class BQ1

Q.1 During the month of June, Farhan manufactures put into process Rs. 112, 500 of

raw materials. The mixing department used 6, 000 labor hours at a cost of 75, 000

and finishing department used 4, 000 labor hours at a cost of Rs. 15.00 per hour.

Factory overhead is applied at a rate of Rs. 7.50 per labor hour in the mixing dapt.

And Rs. 9.00 per labor hour in the finishing dept.

Inventories: June 30 June 01

Materials 40, 500 36, 000

Materials in process 15, 000 13, 500

Labor in process 12, 000 18, 000

FOH in process 9, 000 12, 000

Finished goods 30, 000 24, 000

Farhan Manufacturers produced 50, 000 units of product during the month.

Required: A schedule showing cost of work put in process, cost of goods

manufactured and cost of goods sold. Also find unit cost of materials, labor and

Factory overhead for the month of June Production.

Wish you all the best Page 1