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# MGT402 Cost & Management Accounting GDB Solution

Discussion Question

An automobile industry received an order for the production of 1,000 units of particular spare part. Following cost is incurred for the production of 1,000 units.

 Direct material Rs.20.00 per unit Direct labour Rs. 25.50 per unit Predetermined Factory overhead Applied rate 200% of direct labour cost

It was reported by quality check department that 60 spoiled units were detected which can be sold as scrap for Rs.15.00 each and cost of spoiled output was Rs. 5,790.

Required:

With the help of given data answer the following.

1.      In case of Spoiled output, what will be total cost of completed units under Normal Loss?

2.      In case of Spoiled output, what will be total cost of completed units under Abnormal Loss?

3.      In case of Spoiled output, what will be cost per unit under Normal Loss?

4.      In case of Spoiled output, what will be cost per unit under Abnormal Loss?

NOTE:

Working or calculations are not required for this particular GDB. Just provide your answer (Resulting Figures) according to requirement of question.

Although calculations consider reasonable marks in assignments and papers but here in this GDB, calculations are not required so they would carry NO marks.

1. Total cost of completed units under Normal Loss             Rs. XXX
2. Total cost of completed units under Abnormal Loss         Rs. XXX
3. Cost per unit under Normal Loss                                       Rs. XXX
4. Cost per unit under Abnormal Loss                                   Rs. XXX

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### Replies to This Discussion

Total cost of completed units under Normal Loss Rs. 90710
Total cost of completed units under Abnormal Loss Rs. 95600
Cost per unit under Normal Loss Rs. 90.71
Cost per unit under Abnormal Loss Rs. 95.6
kindly send me the complete solution of this question how you solve it send me as soon as possible
this is my mc 080405241@vu.edu.pk or on my mailing address Mubasharma@hotmail.com
thanks
A.o.a
Tariq bhi kindly send me the solution of this question how u solve it send the solution on my mc080405241@vu.edu.pk
thanks
Direct material=RS20.00x1000=Rs20000
Direct labour cost=Rs25.50x1000=RS25500
F.O.H applied(200% of labour cost)=Rs51000
Total production cost=RS96,500
Normal Loss
Work in process=96500
Cost of spolied output=5790
Estimated recoverable amount=60xRS15=900
Cost of loss=4890
Scrap inventory=900
F.O.H control A/C=4890
Work in process=5790
Finished goods A/C=RS90710
Work in process A/C=RS90710
Cost per units=90710/1000=9RS0.71
Abnormal Loss
Work in process=96500
Scrap inventory=900
Work in process A/C=900
Finished goods A/C=RS95600
Work in process A/C=RS95600
Cost per units=95600/1000
=RS95.6
The following answers and the procedure is also correct..
Check out the solution here......
Total Production Cost is calculated by :
Direct material=RS20.00x1000=Rs20000
Direct labour cost=Rs25.50x1000=RS25500
F.O.H applied(200% of labour cost)=Rs51000
Total production cost=RS96,500
Attachments:
chk the attached images
gud samreen keep it up :-)
thnx tariq sir
thnx brown

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