Mgt402 GDB Solution
Tuesday, January 04, 2011 Posted In MGT Edit This
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Solution
Raheem & Co
Department 1
FIFO method
Quantity schedule.
Units in opening work in process 200
(100% direct material ,65% conversion cost)
Units put into process 11,800 12,000
Units completed & transferred out 6,800
Units lost in process normal 700
Units loss in process abnormal 1800
Still in process will be 2700 12,000
Cost charged to department.
Cost incurred on opening work in process
Direct Material 6,600
Direct Labor 4,500
And FOH 2, 900
Cost added by departments
Direct Material 33400
Direct Labor 18500
And FOH 10100
Total cost in department 1 TOTAL
RS.
Direct Material (6600+33400) 40,000
Direct Labor (4500+18500) 23,000
and FOH (2900+10100) 13,000
EQUIVELENT PRODUCTION (FIFO)
Opening WIP
Completed no of units (current period)
Closing WIP
% Of Completion
Under abnormal loss
Total
Material
0
6600
2700
1800
11100
Labor
200*35%
=70
6600
783
900
8353
FOH
200*35%
=70
6600
783
900
8353
Unit cost.
What will be unit cost for Material under FIFO costing method?
Direct material=RS. 40,000/11100=RS.3.6036
What will be unit cost for Labour under FIFO costing method?
Labour= RS.23,000/8353=RS.2.7535
What will be unit cost for Factory overhead under FIFO costing method?
FOH=RS. 13,000/8353=1.55633
What will be equivalent production units for Material under FIFO costing method?
.
Equivelent unit of production for material=11100
Solution
Raheem & Co
Department 1
FIFO method
Quantity schedule.
Units in opening work in process 200
(100% direct material ,65% conversion cost)
Units put into process 11,800 12,000
Units completed & transferred out 6,800
Units lost in process normal 700
Units loss in process abnormal 1800
Still in process will be 2700 12,000
Cost charged to department.
Cost incurred on opening work in process
Direct Material 6,600
Direct Labor 4,500
And FOH 2, 900
Cost added by departments
Direct Material 33400
Direct Labor 18500
And FOH 10100
Total cost in department 1 TOTAL
RS.
Direct Material (6600+33400) 40,000
Direct Labor (4500+18500) 23,000
and FOH (2900+10100) 13,000
EQUIVELENT PRODUCTION (FIFO)
Opening WIP
Completed no of units (current period)
Closing WIP
% Of Completion
Under abnormal loss
Total
Material
0
6600
2700
1800
11100
Labor
200*35%
=70
6600
783
900
8353
FOH
200*35%
=70
6600
783
900
8353
Unit cost.
What will be unit cost for Material under FIFO costing method?
Direct material=RS. 40,000/11100=RS.3.6036
What will be unit cost for Labour under FIFO costing method?
Labour= RS.23,000/8353=RS.2.7535
What will be unit cost for Factory overhead under FIFO costing method?
FOH=RS. 13,000/8353=1.55633
What will be equivalent production units for Material under FIFO costing method?
.
Equivelent unit of production for material=11100
