MGT402 Assignment No1 Idea Solution Fall October 2010

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This solution is just for idea and can be updated. If you find any problem or any suggestion just correct it and post it again. and dont copy paste it , make some changes in it and than sumbit. thanks

Question No 1.
date
Received
Issued
Balance
Gallons of material
Unit cost
amount
Gallons of material
Unit cost
amount
Gallons of material
Unit cost
amount
2008
Rs
Rs
Rs
Rs
Rs
Rs
MAR.1
250
5.00
1250
MAR.3
1200
10
12000
250
1200
5.00
10
1250
12000
MAR.7
250
400
650
5.00
10
1250
4000
800
10
8000
MAR13
150
10
1500
150
800
10
10
1500
8000
80
10
800
70
800
10
10
700
8000
MAR29
MAR29
870
10
8700
CLOSING INVENTORY ACCORDING TO FIFO IS RS 8700.

Question No

2. RUPEES
OPNING INVENTORY =250*5=1250
ADD. NET PURCHASES =(1200*10)-(80*10)
=12000-800
=11200
MATERIAL AVAILABLE FOR USE =1250+11200=12450
LESS. CLOSING INVENTORY =12450-8700
DIRECT MATERIAL CONSUMED =3750
ADD.DIRECT LABOUR COST =3750+9325
PRIME COST =13075
ADD.F.O.H =13075*(1000*6)
TOTAL FACTORY COST =19075
COST OF GOODS TO BE MANUFECTURED=19075
LESS.CLOSING WORK IN PROCESS =19075-2450
COST OF GOODS MANUFECTURED =16625
COST OF GOODS TO BE SOLD= =16625
LESS.CLOSING FINISHED GOODS =16625-4530
COST OF GOOD TO SOLD AT NORMAL=12095
ADD UNDER APPLIED FACTORY OVERHEADS=12095+1500
COST OF GOOD SOLD AT ACTUAL =13595

SUPPORTING CALCULATION
ACTUAL FACTORY OVERHEADS =7500
APPLIED FACTORY OVERHEADS =6000
UNDER APPLIED FACTORY OVERHEADS =1500