Latest Activity In Study Groups

Join Your Study Groups

VU Past Papers, MCQs and More

We non-commercial site working hard since 2009 to facilitate learning Read More. We can't keep up without your support. Donate.

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)

Views: 10102

Attachments:

Replies to This Discussion

140000+3500*50%=15750

 +♦6^6 Faizan Raza LGTA HA AB AP KE BARI HA

1.Quantity Schedual

Units Strated in process                                                            18200

Units tramsfered to the next Dep                       14000

Units still in process

100% material and 50% Conversion)                3500

Units lost in Process                                          700

                                                                                                18200

Cost Charged To Departement

                                                                        Total                Units   

                                                                        Rs.                   Rs.

Cost Added by the departments

Direct Material                                                 210000            12.0

Direct Labour                                                   77000              4.9

FOH                                                                38500              2.4

                                                                        325500            19.3

 

 

Cost Accounted For As                                                          Rs.

Transferred to next department                                     270,200

(14000 units * 19.3 Rs.)

Work in process Inventory                                Rs.

Direct Material ( 3500 * 100% * 12 units)        42000

Direct Labour ( 3500 * 50% *4.9)                   8575

FOH    (3500 * 50% * 2.4)                             4200 

                                                                                                54775

Total Cost Accounted For                                                              324,975

 

Equivalent Production

Direct Material ( 14000 + 3500 *100%)                                  17500

Labour and FoH (14000 + 2500 * 50%)                                  15750

Unit Cost

Direct Material                                                 210000 / 17500 = 12.0

Direct Labour                                                   77000 / 15750   = 4.9

FOH                                                                38500 / 15750   = 2.4

                                                                                            =19.3




ok jao phir m 2nd ar third ni krti ab

faizan apne kr lia????

nai ye theak hai

kya wrong hai meri bhi same yehi amounts hai

tehrim Decimal point at least 5 places tk hon gi 

han ye theak hai. thank God. kisi ny meri trah b kia.  ab meri confusion khtm hui

14,000 units + 3500 units * 50%         = 15750 units 

u first have to take 3500 units thn put % as 50% the ans would be 1750 thn add 14000 = 15750

1st department men labour ki unit cost 4.88 hai it should be 4.9. aur aap sb 4.8 likh rahy hain jis ki wja sy mera answer match ni ho raha aap sb sy. now plz tell i m wrong r yu???????????

2nd (assembling) department:

cost accumulated in the department/process:

                                                  Cost               Unit cost

previous department                   268800               20.4

Cost Added by the departments

Direct Material                           2200                0.167                    

Direct Labour                            45000               3.59     

FOH                                          33000            2.632

 Total                                      10900

Cost of Equivalent units produced:

Completed in previous department    11000+200                   13200

Units completed in assembling departmennt:

Material                        11000 (2200*100%)                      13200

Labour                          11000 (2200*70%)                        12540

FOH                              11000 (2200*70%)                        12540

please tell is it right solution or not for assembling department?

              

                                            

RSS

© 2022   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service