jab University Paper 2018) cost ACCOUNTING (Purl ee : QUESTION NO. 1 ber of uni Id: (a) If sales price is Rs. 325 Number of units = Rs. 112,000+Rs. 49.20 = 2,276 units (b) If sales price is Rs. 350 Number of units = Rs. 112,000+Rs. 74.20 = 1,509 units WORKING: Caleulation of Gross Profit of the Last Year: Be) Sales 2,000 units x Rs. 280 pee Less: Cost of goods sold . 448,000 Gross profit (Rs. 560,000 x 25/125) ae lation of Unit of Last Year: Total cost per unit - (Rs, 448,000 + 2,000 units) 224 Materials cost per unit (Rs. 224 x 40%) 89.60 Labour cost per unit (Rs, 224 x 45%) 100.80 Factory overhead cost per unit (Rs. 224 x 15%) 33.60 Calculation of Uni f Coming Year: Materials cost per unit (Rs, 8,980 + 25%) 112.00 Labour cost per unit ° —(Rs. 100,80 + 25%) 126.00 FOH cost per unit (Rs, 33.60 + 12.5%) 37.80 ‘Total 275.80 ‘alculation of Ex; 85 Profit Per Unit: GP per unit = Sales price per unit - Total cost per unit (a) If sales price is Rs. 325 per unit GP per unit = Rs. 325.00-Rs.275.80 = Rs, 49.20 (b) If sales price is Rs. 350 per unit GP per unit = Rs. 350.00 - Rs. 275.80 = Rs. 74.20 QUESTION NO. 2 Wy (ON OF COST OF PRODUCTION: Piece Work Halsey Plan 40 56.25 84.37 40 60 90‘The worker will get wages for 9 hour (i, ime worked, Therefore, ur (i.e, the time allowed) irrespective of the time Direct labour cost = Rs. 7.50 x 9 hours ) 0 Regular wages (6 hours x Rs, 7.50) Rs. 45.00 Premium * @B hours x Rs. 7.50) x 50% 11.25 Total wages _ Rs. 56 25 () Rowan Plan: Regular wages (6 hours x Rs, 7.50) Rs. 45.00 Premium | (3 hours + 9 hours) x (6 hours x Rs. 7.50) 15.00 Total wages —Rs. 60.00 —_ QUESTION NO. 3 June : Applied FOH Budgeted FOH , Vi 2 Budgeted FOH Actual FOH Or) duly Rs. Yolume Variance: 48,000 Applied FOH 56,000 Budgeted FOH (Dr) __8,000 Rs. Budgeted Variance: 56,000 Budgeted FOH ; 56,000 Actual FOH Zero Budgeted Capacity 8,000 6,000COST ACCOUNTING (Punjab University Paper 201g) COST ACCOUNTING EO Variable rate = Feo = Rs.4 per ton Caloulation of Fixed Cost: Fixed cost = Budgeted F.O.H. - Variable F.0.H. 64,000 - (Rs. 4 x 8,000) = Rs. 32,000 Calculation of Applied Rate; = Fixed F.O.H. rate + Variable F.0.H: rate Fixed cost: P = Normal capacity * Variable F.0.H. rate Rs. 32,000 = “3000 +s 4 = Rs.8 Qver/ Under Applied FOH: Applied FOH (Rs. 8 x 9,000 tonns) 72,000 Actual FOH 71,000 (Cr.) ___1,000 Volume Variance: Applied FOH 72,000 Budgeted FOH [Rs. 32,000 + (Rs. 4 x 9,000 tonns)] 68,000 (Cr.) 4,000 Budgeted Variance: Budgeted FOH Actual FOH (Dr.) QUESTION NO. 4 Wajahat Industries Cost of Production Report For the month ended .. . QUANTITY SCHEDULE: Units from preceding department Units added by department Units completed and transferred Units still in process (100% material, 50% labour, 40% FOH) Units lost during processcost received from preceding department Direct material Direct labour Factory overhead Total cost added sdjustment in unit cost due to lost units Total cost charged to production Cost Accounted for as Follows: Cost of units completed & transferred: (82,000 units x Rs. 15) Cost of Units in Process: Previous: (3,000 units x Rs. 5) (3,000 units x 100% x Rs. 4.75) (3,000 units x 50% x Rs. 3.50) (3,000 units x 40% x Rs. 1.75) ti 3 = 0 Material = 32,000 + (100% of 3,000) 32,000 + (50% of 3,000) OH = 32,000 + (40% of 3,000) f Material = 166,250 / 35,000 units 117,250 / 33,500 units POH = 58,100 / 33,200 units Revised unit cost due to lost unit: = Rs. 175,000/ 35,000 units Total Cost Rs. 175,000 166,250 117,250 58,100 15,000 14,250 5,250 2,100 35,000 units 33,500 units 33,200 units Rs. 4.75 per unit Rs. 3.50 per unit Rs. 1.75 per unit Rs. 5 per unit Units Cost Rs. 8.75COST ACCOUNTING (Punjab Uniwersity Paper 29), SS OO Ee ——____ QUESTION NO.5 Spoiled goods WLP. - Material W.LP. - Labour WLP. - FOH 200 Spoiled goods 200 ’ 54 | FOH control 620 } 85 W.LP. - Material W.LP. - Labour WLP. - FOH Finished goods 20,425 Finished goods 19,680 W.LP. - Material 5,496 W.LP. - Material 58 W.LP. - Labour 8,715 W.LP. - Labour 00 W.LP. - FOH Per unit cost = Rs. 425 6,214 W.LP. - FOH Per unit cost = Rs. 410 QUESTION NO. 6 (a) Journal Particulars Debit Credit Rs. Rs. > Materials 125,000 Voucher payable Work in process - Material 122,000 Work in process - Labour 80,000 Work in process - FOH 100,000 Materials Payroll FOH applied Finished goods 307,000 Work in process ~ Materials Work in process - Labour Work in process - FOH Cost of goods sold 304,000 Finished goods _|_ 304.000} MaterialsBalance b/d. Pay roll Balance bd 30,000 | Fished goods 122,000 Balance od 34,000 Work in Process — Labour 118,000 40,000 | Finished goods 85,000 80,000 | Balance c/d 35,000 120,000 120,000 Work in process — Factory Overhead Rs. 50,000 | Finished goods 104,000 FOH applied 100,000 | Balance c/d 46,000 Finished Goods Rs. a. 25,000 | Cost of goods sold 304,000 118,000 | Balance c/d 28,000' COST ACCOUNTING (Punjab University Paper 201, : QUESTION NO. 7 — Cost of G For the period ended .. Particulars Is: Materials inv Add: Purchases Materials available for use entory Cost of material use! Add: Direct labour Add: Factory overhead Total factory cost Add: Work in process inventory Cost of goods to be manufacturing Less: Work in process inventory Cost of goods manufactured Add: Finished goods inventory Cost of goods to be sale Less: Finished goods inventory Cost of goods sold at normal Less: Over applied FOH "Cost of goods sold at actual Calculation of Over/Under Applit Superintendence “Heat and light Indirect materials used “Depreciation of building “Miscellaneous FOH costs ‘Applied factory ove! ‘Over applied FO! Harris Manufacturing Co. . foods Manufactured and Sold Statement Rs. mo 12,000 120,000 132,000 15,000