The following transactions relate to the AKHTER CORP. for the month of November 2015: Product - A Product – B Production 10,000 units 8,000 units Beginning Inventory 1,000 units 900 units Ending Inventory 2,000 units 100 units Unit Cost applicable to inventories and Production Direct Material Rs. 4 per unit Rs. 3 per unit Direct Labour Rs. 10 per unit Rs. 20 per unit Factory Overhead Rs. 7 per unit Rs. 14 per unit Actual FOH was Rs. 182,400, under or over applied factory overhead is to be adjusted in Cost of Goods Sold. Calculate Prime Cost.
The following transactions relate to the AKHTER CORP. for the month of November 2015: Product - A Product – B Production 10,000 units 8,000 units Beginning Inventory 1,000 units 900 units Ending Inventory 2,000 units 100 units Unit Cost applicable to inventories and Production Direct Material Rs. 4 per unit Rs. 3 per unit Direct Labour Rs. 10 per unit Rs. 20 per unit Factory Overhead Rs. 7 per unit Rs. 14 per unit Actual FOH was Rs. 182,400, under or over applied factory overhead is to be adjusted in Cost of Goods Sold. Calculate Prime Cost.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 23E: Orinder Company provided the following information for the last calendar year: During the year,...
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The following transactions relate to the AKHTER CORP. for the month of November 2015:
|
|
Product - A |
Product – B |
|
Production |
10,000 units |
8,000 units |
|
Beginning Inventory |
1,000 units |
900 units |
|
Ending Inventory |
2,000 units |
100 units |
Unit Cost applicable to inventories and Production
|
Direct Material |
Rs. 4 per unit |
Rs. 3 per unit |
|
Direct Labour |
Rs. 10 per unit |
Rs. 20 per unit |
|
Factory |
Rs. 7 per unit |
Rs. 14 per unit |
Actual FOH was Rs. 182,400, under or over applied factory overhead is to be adjusted in Cost of Goods Sold.
Calculate Prime Cost.
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