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Alec Ltd. is one of the largest electronic equipment producers in the country. It
undertakes the work according to the consumer tastes and preferences. Following data is
for the December 2012.
Cost from department - 1 Rs. 10,000
Cost added in department - 2:
Material Rs. 40,000
Labor Rs. 50,400
FOH Rs. 67,200
The quantity schedule shows that 20,000 units were received during the month from the
department - 1 and 12,000 units transferred to finished goods storeroom. 8,000 units in
process were 100% complete as to material and 60 % complete as to the conversion cost.
By using the above information, you are required to prepare/calculate:
1. Quantity schedule. 02 Marks
2. Cost accumulated in the department. 06 Marks
3. Accounting treatment / Cost apportionment. 09 Marks
4. Equivalent production units for material & conversion cost. 03 Marks
5. Per unit cost. 07 Marks

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Replies to This Discussion

cost per unit is 9.5 not 9

Alec Ltd.

Cost of Production Report.

For the Month of December 2012

I-Quantity Schedule:

            Units received previous dept #                                                               20,000

            Unites completed and transfer out                 12,000

            Unites still in process                                       8,000


II-Cost Accumulated in the Department / Process:

             Cost received from preceding department is                                      Rs.10, 000

            Cost added by department-11:

            Direct Material                                               Rs. 40,000

            Direct Labor                                                    Rs. 50,400     

            Factory overhead                                             Rs. 67,200               Rs. 1, 57,600

                                                                                                                     Rs. 1, 67,600    

III-Calculation of Equivalent Units Production:

            (100% of completed units + % of units in process)  + Previous department units 

            Direct Material                        (12,000x100%)+(8,000x100%)        = 20,000 Units

            Direct Labor                              (12,000x100%)+(8,000x60%)        = 16,800 Units

            F.O.H                                         (12,000x100%)+(8,000x60%)        =16,800 Units

IV- Unit Cost:

            Previous department = Total cost /Number of units = 10,000 / 20,000 = Rs. 0.50


            Direct Material                                        40,000/ 20,000 = 2.00

            Direct Labor                                            50,400 /16,800 = 3.00

            F.O.H                                                       67,200 / 16,800 = 4.00

                                                                                                                        Rs. 9.00

 Rs. 9.50



V- Apportionment of the Accumulated Cost to Finished Goods:

            Cost of units transferred to the next department

            No of completed units x Total cost per unit:

                        12,000         x         9.50                                        = 1, 14,000

            Units in process:

            Cost of preceding department (8,000 x 0.5)              =        Rs. 4,000

            Direct Material           (8,000x100%) x 2.00              =        Rs. 16,000

            Direct Labor       (8,000x60%) x 3.00                                    =       Rs. 14,400

            F.O.H              (8,000x60%) x 4.00                            =       Rs. 19,200                     


                                                                                                      Rs. 1, 67,600




2no mein sy kn sa thk solution hy???????????????????

Dono he theak hain dear bs calulation kar lana tori. Zahid Hayat wala bikul theak hai

g  zahid hayat wala solution bilkul theak hai

Becoz zahid hayat nay bilkul book walay method sy kiya hai

thanks to all....................


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