SEMESTER FALL 2013
COST AND MANAGEMENT ACCOUNTING (MGT402) ASSIGNMENT NO. 01 (NON GRADED)
DUE DATE: 25TH NOVEMBER, 2013 MARKS: 20
To enable the students to:
• Prepare Cost of goods manufactured and sold statement;
• Understand the calculation of units manufactured and cost of ending inventory;
• Prepare income statement.
Macro Manufacturing Ltd. (MML) - a famous footwear brand in Karachi has 40 stores across the city. The company has gained reputation because of stylish and well-designed footwear for ladies and men.
At the end of financial year 2012-13 company’s owner is desirous to know the amount of profit earned during the year. The records of MML show following information for the financial year 2012-13:
i. During the year, direct material of Rs. 20,000 was purchased; direct labor cost incurred is Rs. 24,000.
ii. Other expenses incurred are:
Insurance expired – building
Power, heat and light
Repair & Maintenance of machinery
Salaries of marketing staff
Depreciation of Factory
Other manufacturing expenses
Rent of building
iii. Sales during the financial year were of Rs. 874,500 (800 units).
iv. As on June 30, 2013, the company has cash of Rs. 66,000, debtors Rs. 12,000, plant and machinery Rs. 99,000, account payables Rs. 3,500 and current liabilities are of Rs. 250.
v. Position of inventories is as follows;
1st July 2012 30th June 2013
Raw materials Rs. 34,000 Rs. 15,500
Work in process Rs. 22,000 Rs. 13,000
Finished goods Rs. 33,000 (40 units) ? (30 units)
a) Cost of goods manufactured and sold statement for the year ended June 30, 2013 Marks: 15
b) Income statement for the year ended June 30, 2013. Marks: 05
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RULES FOR MARKING
Please note that your assignment will not be graded or graded as Zero (0), if:
• It is submitted after the due date.
• The file you uploaded does not open or is corrupt.
• It is in any format other than MS-Word or Open Office; e.g. PowerPoint, PDF etc.
• It is cheated or copied from other students, internet, books, journals etc.
• Please also note that assignment in this course is non-graded and don’t have weightage in total marks of the subject.
Note related to load shedding: Please be proactive
As you know that Post Mid-Term semester activities have been started and load shedding problem is also prevailing in our country now a days. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs.
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anyone plz help
me bana longa aj kal mai abhi time hai wasay bhi bht easy hain ye assignment
aur non graded bhi hai to daro nahi ap
Please Discuss here about this assignment.Thanks
Our main purpose here discussion not just Solution
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kese solv krni hai ye assignment ??koi idea h dai
me idea post kar donga ager mera net chal geya
Is rent of building and insurance of building covered in factory overheads? plzz reply ASAP....im trying solving it myself
Rent of building is part of Income Statement
konse section mein aega rent of bldg....it is not an operating expense n not a financial expense as well....can u plzz clear this?? i got my net profit 652272...is it correct?
building rent is an operating expenses kia ho geya
Rent expenses hain yee
yh Q kesy ho ga
Opening material inventory Rs. 10,000
Closing material inventory 5,000
Direct Labor 30,000
Total factory cost 80,000
Calculate the value of material purchased during the year.
Cost of material consumed will be calculated through a reverse calculation starting from total factory cost in which factory overhead cost and direct labor cost will be added, thereafter the cost of material consumed will be adjusted in reverse order with the changes in material inventory to know the amount of material purchased during the year.