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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

295768 yha app ki kasy aye?????????

Units transferred to the next Dep                      

295768 kay aya plzzzzzzzzzzzz help

298983.8/11000=27.180  is ya ha jab k 25.33 ana chay

anyone plz guide me about the calculation of 3rd deptt????

Hay koi ALLAH ka naik banda yehan

where is the uploaded solution??

olution: Molding Department:
Quantity Schedule:
Units Put into process 18,200
Units completed and transferred to Assembly department 14,000
Still in process 3,500
Unit lost 700 18,200
Cost Charged by the department: Total Rs. 
Direct material 210,000
Direct Labor 77,000
FOH 38,500
Total 325,500
Equivalent units produced:
Direct material 14,000+(3500x100%) 17,500
Direct labor & FOH 14,000+(3500x50%) 15,750
Unit cost: Rs.
Direct material 210,000/17,500 12.0000
Direct labor 77,000/15750 4.8889
FOH 38,500/15750 2.4444
Total unit cost 19.3333
Apportionment of cost:
Transferred to next department 14,000x19.3333 270,666
WIP inventory
Direct material 3500 x 12 42,000
Direct labor 3500 x 0.5 x 4.8889 8,556
FOH 3500 x 0.5 x 2.444 4278
325,500
Assembly Department:
Quantity Schedule:
Units received 14,000
Completed and transferred to next dept 11,000
still in process 2,200
Lost 800 14,000
Cost charged by the department:
Cost from preceding department 14,00 x 19.3333 270,666
Added by this department:
Material 2,200
Labour 45,000
FOH 33,000
350,866
Equivalent Units produced: 
Material 11,000 + (2200x100%) +800 14,000
labor & FOH 11,000 + (2200x70%) +800 13,340
Unit Cost:
From preceding dept 19.3333
Material 2200/14,000 0.1571
Labor 45,000/13,340 3.3733
FOH 33,000/13,340 2.4738 
Total unit cost 25.3375
Cost transferred to the next dept:
11,000 x 25.3375 278,713
Cost of units lost 800x25.3375 20,270
total cost transferred 298,983 
Unit cost of the transferred units 298,983/11,000 = 27.1803
Apportionment of cost:
Transferred to next dept 298,983
WIP ending
Cost from preceding department 2,200 x 19.3333 42,533
Material 2,200 x 0.1571 345
labor 2,200 x .70 x 3.733 5,195
FOH 2,200 x .70 x 2.4738 3,810
350,866
Finishing Department:
Quantity Schedule:
Units received from preceding dept. 11,000
Units completed 9,000
still in process 1,500
Unit lost 500 11,000
Cost charged by the department:

Cost received from preceding dept 298,983
Cost added by the department:
Labor 52,000 
FOH 41,000
391,983
Equivalent units produced: 
Labor & FOH 9,000 + (1500x.30) + (500x.70) = 9800 Units
Unit cost: 
cost from preceding dept 298,983/11000 27.1803
Labor 52000/9800 5.3061
FOH 41000/9800 4.1837
Total Unit Cost 36.6701
Apportionment of cost: 
Cost of units transferred 9000x36.6701 330,031
WIP inventory:
cost charged in preceding dept 1500 x 27.1803 40,770
Labor 1500x.30x5.3061 2,388
FOH 1500x.30x4.1837 1,833
Abnormal Loss:
Cost charged in preceding dept 500x27.1803 13,590
Labor 500x.70x5.3061 1,857
FOH 500x.70x4.1837 1,464
391,983

Mgt402

 

solution:

Molding Department:

Quantity Schedule:

Units Put into process                                                                           18,200

Units completed and transferred to Assembly department           14,000

Still in process                                                                          3,500

Unit lost                                                                                      700    18,200

Cost Charged by the department:                                              Total Rs. 

Direct material                                                                                210,000

Direct Labor                                                                                     77,000

FOH                                                                                                 38,500

Total                                                                                             325,500

Equivalent units produced:

Direct material                 14,000+(3500x100%)                 17,500

Direct labor & FOH           14,000+(3500x50%)                   15,750

Unit cost:                                                                         Rs.

Direct material          210,000/17,500                                 12.0000

Direct labor              77,000/15750                                      4.8889

FOH                         38,500/15750                                      2.4444

Total unit cost                                                                 19.3333

Apportionment of cost:

Transferred to next department   14,000x19.3333                270,666

WIP inventory

Direct material                             3500 x 12                          42,000

Direct labor                                 3500 x 0.5 x 4.8889             8,556

FOH                                             3500 x 0.5 x 2.444              4278

                                                                                         325,500

Assembly Department:

 Quantity Schedule:

Units received                                                                                    14,000

Completed and transferred to next dept                          11,000

still in process                                                                 2,200

Lost                                                                                  800           14,000

Cost charged by the department:

Cost from preceding department   14,00 x 19.3333                               270,666

Added by this department:

Material                                                                                                  2,200

Labour                                                                                                 45,000

FOH                                                                                                     33,000

                                                                                                         350,866

Equivalent Units produced: 

Material             11,000 + (2200x100%) +800                  14,000

labor & FOH       11,000 + (2200x70%) +800                    13,340

Unit Cost:

From preceding dept                      19.3333

Material        2200/14,000                0.1571

Labor         45,000/13,340               3.3733

FOH           33,000/13,340               2.4738 

Total unit cost                              25.3375

Cost transferred to the next dept:

11,000 x 25.3375                                                             278,713

Cost of units lost  800x25.3375                                           20,270

total cost transferred                                                      298,983    

Unit cost of the transferred units      298,983/11,000 = 27.1803

Apportionment of cost:

Transferred to next dept                                                                  298,983

WIP ending

Cost from preceding department       2,200 x 19.3333                           42,533

Material                                           2,200 x  0.1571                                345

labor                                               2,200 x .70 x 3.733                        5,195

FOH                                                2,200 x .70 x 2.4738                       3,810

                                                                                                      350,866

Finishing Department:

Quantity Schedule:

Units received from preceding dept.                                           11,000

Units completed                                                      9,000

still in process                                                         1,500

Unit lost                                                                     500       11,000

Cost charged by the department:


Cost received from preceding dept                                           298,983

Cost added by the department:

Labor                                                                                      52,000 

FOH                                                                                        41,000

                                                                                             391,983

Equivalent units produced: 

Labor & FOH            9,000 + (1500x.30) + (500x.70)   =          9800 Units

Unit cost: 

cost from preceding dept        298,983/11000        27.1803

Labor                                    52000/9800              5.3061

FOH                                       41000/9800             4.1837

Total Unit Cost                                                   36.6701

Apportionment of cost: 

Cost of units transferred           9000x36.6701                           330,031

WIP inventory:

cost charged in preceding dept   1500 x 27.1803                           40,770

Labor                                      1500x.30x5.3061                          2,388

FOH                                         1500x.30x4.1837                         1,883

Abnormal Loss:

Cost charged in preceding dept        500x27.1803                         13,590

Labor                                             500x.70x5.3061                     1,857

FOH                                               500x.70x4.1837                     1,464

                                                                                            391,983

 

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