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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
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:
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

Can show us the complete calculation

tehrim i figured out where i am wrong ,spent whole night on this my ans of cost charged n total cost accounted should be same but it is not wil do again

yeh same here i also think it has some mistakes

sory i get my mistake... as i take 22,000 in the 2nd department thats y i get 1.67 sumyhng... ur unit cost is correct as now i have that is 0.1667

nd 1 more thing take into account the after decilme 4 digits then u may get the equal amount as i got in 1st department that is 325500

it seems like u dnt put effect of normel loss in the 2nd department

thats y ur amounts having much different from mine as i noticed

as when u divided the amount of direct material 22,000 / 13200 = 1.67

if i am wrong then surely informed me

how unit cost 199.332?????/

Buhat easy hai brothers and sisters..... God bless you all.

waseem bhai kaha sy easy hai khuch idea tu share kro ap

Yup its almst easy

bt my answer r not same of total cost and cost accounted for... my answers are

quantity schedule = 18,200

cost charged to dep = 325500 and total unit cost = 19.33

cost accounted as follow

transfered to next department 

(14,000 * 19.33)      = 270620

d.material = 42000

d.labour = 8557.5

FOH = 4270

and total cost accounted for  = 325448

is theer any1 who solved the both departments, i calculated again and agian but no mistake found in my calculation can any1 else share ur answers?

mano rano sorry app k answers b galat hain 

mano yeah apka 19.33 kaisy aya hai??????????


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