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# MGT402 - Cost & Management Accounting Assignment No. 02 Solution & Discussion Due Date:30-12-2011

Q. No. 01 (9 + 9 Marks)
“Cost of Production Report”
Model Manufacturing Company manufactures a product by using process cost system.
The manufacturing process of the organization is carried on by two departments -
Department A and Department B. Production statistics of Department A for December
show the following data:
Units
Units in process - Sep. 01 1,500
Units completed and transferred 5,000
Units put into process 7,000
Units lost abnormally 600
(100% as to material & 35 % as to conversion cost)
Normal loss (units) 400
Units in process - Sep. 30 2,500
Production Costs of Department A
Cost of Work in process (Sep. 01) Rs.
Materials 22,000
Labor 9,000
Costs incurred during month:
Materials 8,000
Labor 5,450
o Opening work in process units: completed as to material 100% and
conversion cost 55%.
o Closing work in process units: completed 100 % as to material while to
conversion cost:
40 % of Units were 60 % complete
45 % of Units were 40 % complete
Remaining Units were 25 % complete
Virtual University of Pakistan (Fall semester 2011)
MGT-402
Required:
You are required to calculate the total cost accounted for Department A under:
1. FIFO cost method.
2. Weighted average cost method.

Q. No. 02 (4 + 4 + 4 Marks)
“Joint Product & By Product”
Hypothetical Company manufactures different products such as A, B, C, D & E jointly.
During the month of November 2011, the company manufactures 16,300 units. A total
cost of Rs. 16,790 was incurred to produce these units.
Further information is provided as:
Prod. Qty. Mfg. P/U Sale Price Units Sold Further cost needed
(%) (Rs.) (Grams) (Rs. P/U)
A 34 4 5,542 1.1
B 28 3 4,564 0.9
C 19 2 3,097 0.6
D 12 6 1,956 1.5
E 7 5 1,141 1.3
100 16,300
Required: You are required to allocate the above cost on the basis of:
• Physical quantity ratio method
• Selling price ratio method
• Hypothetical market value method
All Supporting Formulas and calculations are required as they carry marks.

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### Replies to This Discussion

Taiq bahi assignment ke solutin upload karo na

still no solution of cost assignment ?

tody is the final day of assignment plzzzzzzzzzzzzzzzz upload solutin for help

tariq bhai apne hmesha help ki hai....
plsss 100 % correct solution upload kr dain na.. :-(

Physical Quantity ratio method.

19790/16300 x 5542                               5708.59

16790/16300 x 4564                                4701.19

16790/16300 x 3097                               3190.09

16790/16300 x 1956                               2014.78

16790/16300 x 1141                               1175.28         16790

Selling Price method.

4                    *            5542             = 22168

3                    *            4564              = 13692

2                    *            3097              = 6194

6                     *            1956              = 11736

5                   *             1141              = 5705

sabir gud keep it up :-)

tariq bahi plz upload complet solution

any one who have solved this assignment please upload or give hint.

us k wait krn sirf 2 ganta reh giya ha

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