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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

mano can u post ur ans plz

Department no 1:

Quantity schedule:18200

Cost charged to department:

Total cost=115500      unit cost=19.332

Total cost accounted for ---------------------  325479  

Transferred to next department

14000*19.332     ------------------------------   270648

Equivalent units produced:

Direct material= 17500

Factory over head=15750

Direct labor=15750

Cost per Units:

Direct material==12


Direct labor=4.888


Department no 02 :

Quantity schedule:14000

Cost charged to department:

                  Total cost=350848      unit cost=26.888

cost charged to dept---------------------------350848  

Transferred to next department


Total cost accounted for  ----------------------------- 305711.78  

Equivalent units produced:

Direct material= 13200

Factory over head=12540

Direct labor=12540

Cost per Units:

Direct material==0.1666


Direct labor=3.588

Calculations may be wrong, but the method is perfectly right. so students can get idea from here and then solve it themselves. 

First Department main aap ki apportionment main cost e different hian most probably,

faizan bhai 15750 kaisy aye amount ??????????????????????????

faizan plz tell me the method of how to unit lost be considers in equivalent unit??? 

Normal loss would not be consideered in any calculation

M.tariq Malik app k answers galat hain 

faisal javed fir ap ds do tekh ans agr Sir tariq k ans gult hn to

How to fnd direct material of dept3

if the difference between cost charged to dept. and total cost accounted for is 6,000 for 2nd dept. .. Does it means there is an error in calculation?

yes there is an error

phly r dosrydeprtmnt ma hum loses treatment ni kreen gy because its normal loss...3 department k ly kreen gy treatment..


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