MGT402

MGT402 Cost&Management Accountiong Assignment Solution

Question:
Prepare cost of Goods Sold Statement of General Tyres for the year ended on 31st December, 1995 from the following information:-Raw Material Inventory(1-1-1995) 42,000Purchases 180,000Returns & Allowances 2,000Raw Material Inventory(31-12-1995) 39,500Direct Labour Cost 75,000Carriage in 2,500Factory Overhead Cost 20,200W.I.P Inventory(1-1-1995) 12,000W.I.P Inventory(31-12-1995) 16,000Finished Goods Inventory(1-1-1995) 58,000Finished Goods Inventory (31-12-1995) 56,500

SOLUTION;

Particles RUPEES RUPEES

DIRECT MATERIAL CONSUMED

Opening material inventory 42,000

ADD: Net Purchases 180,000

Material available for use 2,22,000

LESS: Closing inventory 39,500

Direct material used 1,82,500

ADD: Direct labour 75,000

PRIME COST 2,57,500

ADD: FOH cost 20200 Returns & Allowances 2500

Carriage in 2000 24,700

TOTAL FACTORY COST 2,82,200

ADD: Opening WIP 12,000

Cost of good to be manufactured 2,94,200

LESS: Closing WIP 16,000

Cost of good manufactured 2,78,200

ADD: Opening FG 58,000

Cost of good to be sold 3,36,200

LESS: Opening FG 56,500

Cost of good sold 2,79,700