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mgt101 GDB-2 part-1

RAW MATERIAL            20000

PURCHASE                  100000


FRIGHT                          1000



DIRECT LABOUR            50000                             181000+   80000= 261000

FACTORY O/H              211000                              261000-50000=211000



is this correct??????

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Replies to This Discussion

yy kia h ap ny....

tarteeb wise post karo  kuch pta bi chalay heading k saath .................aur 1st part 60,000 kahan say aur kyu likha hai??

100000 and 60000 are purchases

conversion cost ka jawaab kis formola se likha hai. Book kay mutabik The formola of

Conversion cost = Labor cost + factory overhead

Complete Solution

Answer: a Cost of material consumed:

   Raw material                                 20,000         

+ Purchase                                      100,000        

+ Purchase                                        60,000

+ Fright                                              1,000

   Cost of material consumed                181000

b. Total Factory cost:

   Direct material                                181000

+ Cost                                               80,000

   Factory cost                                          261000

   Cost                                               80,000

Direct Labour                                   50,000    

   Factory over head                                  30,000

 c. Factory Overhead Cost:

= Conversion cost – Direct Labour

= 80,000  - 50,000

=  30,000

1.Describe the impact on total factory cost determined by the Home Comforts if we use Last in First out (LIFO) method.

Answer: There is no closing inventory so there is no effect of total factory cost.

Marketing manager salary overhead cost nahi hai 

Nazish you are missing one item...

Opening Raw Material
+Freight In
Material Available For Use
Less Closing Material
Cost Of Material Consumed

So We Need Closing Stock Of the Raw Material

Closing Stock Of the Raw Material kaisay find karnii hai

wohi to main b internet sa find ker raha hoon... pehly aata tha mujha ab bhool gaya hua hoon main b...

Q k closing Inventory k baghair asnwer nikal hi nahee sakta

jab usny kaha hy there is no ending inventory to ts means closing ki value zero ho jye gi or anser mill jye ga

but this is just to mislead as c/b of raw material is zero at year end.


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