Q1a) Kamran Company produces various types of fertilizer. No beginning units in process or finished units were on hand on January 1, 2015, 30,000 finished units were on hand on December 31, 2015 and 95,000 units were sold during the year. There were no units in work in process inventory on December 31, 2015. The material put into production cost Rs. 300,000. 75% were direct material. There was no beginning or ending material inventory. Labor costs were Rs. 350,000, 40% was for indirect labor. Factory overhead costs, other than indirect materials and indirect labors were the following: Heat, light and power Rs. 115,000 Depreciation 78,000 Factory Taxes 65,000 Repairs and Maintenance 42,000 Selling Expenses were Rs. 80,000 general and administrative expenses were Rs. 50,000. Calculate Cost of Goods Manufactured.
Q1a) Kamran Company produces various types of fertilizer. No beginning units in process or finished units were on hand on January 1, 2015, 30,000 finished units were on hand on December 31, 2015 and 95,000 units were sold during the year. There were no units in work in process inventory on December 31, 2015. The material put into production cost Rs. 300,000. 75% were direct material. There was no beginning or ending material inventory. Labor costs were Rs. 350,000, 40% was for indirect labor.
Heat, light and power Rs. 115,000
Factory Taxes 65,000
Repairs and Maintenance 42,000
Selling Expenses were Rs. 80,000 general and administrative expenses were Rs. 50,000.
Calculate Cost of Goods Manufactured.
Q1b)
During June, 30,000 units were transferred in from Department A at a cost of Rs. 69,000. Materials cost of Rs. 15,000 and conversion cost of Rs. 12,780 were added in Department B. on June 30, Department B had 8,000 units of work in process 80% complete as to conversion cost. Materials are added in the beginning of process in Department B.
Calculate unit cost with respect to all component of costs (Hint: material and conversion)?
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