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Assignment:
Superior Products Manufacturer Limited (SPML) manufactures industrial products that go through
three processing departments – molding, assembling and finishing. The information pertains to the
operations of the molding department for May, 20X3 is as follows:
Units started in molding department 18,200
Cost incurred in molding department: Rs.
Direct material 210,000
Direct labor 077,000
Factory overhead 038,500
14,000 units were completed and transferred to the assembling department during the month of May.
There were 3,500 units as to still-in-process (completed up to 100% material and 50% conversion cost).
700 units were lost during processing and it was treated as normal loss.
Following is the information pertaining to the operations of the assembling department:
11,000 units were completed and transferred to the finishing department. 2,200 units were in process
and completed up to 100% material and 70% conversion cost. Cost incurred in the department is as
follows:
Rs.
Direct material 2,200
Direct labor 45,000
Factory overhead 33,000
During final inspection at the end of the process, it was discovered that 800 units were lost owing to
unavoidable spoilage.
9,000 units were completed in the finishing department and transferred to the store room. 1,500 units
were still in process (converted 30%) and 500 units were lost which were 70% converted but not
charged for any direct material. This loss is to treat as abnormal loss. Cost incurred in finishing
department is:
Rs.
Direct labor 52,000
Factory overhead 41,000
Required: Prepare following schedules for all three departments by using the above information:
a) Quantity Schedule (3 Marks)
b) A schedule of cost to be charged by each department (7 Marks)
c) A schedule of total cost accounted for (7 Marks)
d) A schedule of equivalent production (6 Marks)
e) Cost per unit in each department (3 Marks)
f) Working for normal and abnormal loss (4 Marks)

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Replies to This Discussion

best treatment solving of this type of question in this format Tariq Bahi.. i am solving...

 

Quantity Schedule

Units started in process

Units received from preceding departments

Units transferred to Next department

Units transferred to finished goods

Units completed and still in department

Units still in process

 

Units Lost in process

Normal Loss

Abnormal Loss

 

Cost Charged to Department.

Department I

Department II

Department III

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Format choro answer amounts share karo

Share complete solutions

dear

chk page 142 wahan tu 800 add ni hue

soliution upload plz

solution upload plz

Quantity Schedule

 

 

 

Units Started in process

 

18200

 

Units transferred to the next Dep                      

14000

 

 

Units still in process

100% material and 50% Conversion)               

 

 

3500

 

Units lost in Process

700

18200

Cost Charged To Department

And Cost Added by the departments

 

Total 

Rs.

Units

Rs.

Direct Material  

210000

12.0

Direct Labor

77000

4.9

FOH

38500

2.4

 

355500

19.3

Cost Accounted For as Follows

 

 

Transferred to next department (14000 units * 19.3 Rs.)

                                  

 

270200

Work in process Inventory    

     Direct Material (3500 * 100% * 12 units)                             

42000

 

Direct Labor (3500 * 50% *4.9)                  

8575

 

FOH    (3500 * 50% * 2.4)                             

4200

54775

Total cost account for

 

324975

Equivalent Production

 

 

 

Direct Material (14000 + 3500 *100%)

17500

 

Labor and FOH (14000 + 2500 * 50%)                                 

15750

 

Unit Cost

Direct Material                                                 210000 / 17500 = 12.0

Direct Labor                                                  

77000 / 15750   = 4.9

FOH                                                               

38500 / 15750   = 2.4

                                                                                           

 

 

 

 

 

 

 

 

19.3

 

Department No 2:-

 

 

Quantity Schedule

 

 

 

Units Started in process

 

14000

 

Units transferred to the next Dep                      

295768

 

 

Cost Charged To Department

And Cost Added by the departments

 

350848

 

2200*19.333333     = 42533.333

2200*0.1571429      = 345.71438

2200*70%*3.3733133     = 5194.9025

2200*70%*2.47376        = 3809.5404

Total                                                  

 

 

 

 

 

 

350867.66

 

 

 

Cost Accounted For as Follows

 

 

Transferred to next department (11000 units * 27.180344 Rs.)

                                  

 

298983.79

Total cost account for

 

305711.78 

Equivalent Production

 

 

 

Direct Material 13200

 

 

Labor and FOH 12540

 

 

 

Direct labor 12540

 

 

 

Unit Cost

                                                                                           

Cost per Units:

Direct material==0.1666

FOH=2.631

Direct labor=3.588

 

 

 

 

 

 

 

 

 

 

                               

Quantity schedule:14000

Total cost             350867.66

Total unit cost        25.33761

Apportionment:

11,000*25.33761 = 278713.71

800*25.33761 = 20270.088

Total transferred amount 278713.71+20270.088= 298983.8

 

         Department No 3:-

 Quantity schedule:-295768



ya answer sahi nikala ha na.........???????????

depetment 3 ka solution  to dain

2nd dpt ka kexy aya mjy smj ni a ra

check page no 140

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