Mgt402 GDB
Monday, January 03, 2011 Posted In MGT Edit ThisDiscussion Question
Raheem & Co uses process costing. Cost and additional information of first department for the month of December is given below:
Units
Units in opening work in process
(100% completed as per direct material and 65% completed with conversion cost) 200
Units put into process 11,800
Units completed & transferred out 6,800
Units loss- Abnormally
(Completed 100% as par direct material and 50 % as par conversion cost) 1,800
Normal loss 700
Remaining units were still in process ?
Additional information: vCost incurred on opening work in process Direct Material Rs. 6,600, Direct Labor Rs. 4,500 and FOH Rs.2, 900. vCost incurred by the department (Direct material Rs. 33,400, Direct labor Rs. 18,500 and FOH Rs. 10,100) vThe still in process units were completed 100 % as per direct material and for conversion cost 20 % of Units were 40 % completed 30 % of Units were 20 % completed Balance of the Units was 30 % completed.
Required:
With the help of given data answer the following. [list=1]
[*]What will be unit cost for Material under FIFO costing method?
[*]What will be unit cost for Labour under FIFO costing method?
[*]What will be unit cost for Factory overhead under FIFO costing method?
[*]What will be equivalent production units for Material under FIFO costing method?
NOTE: Working or calculations are not required for this particular GDB. Just provide your answer (Resulting Figures) according to requirement of question. Although calculations consider reasonable marks in assignments and papers but here in this GDB, calculations are not required so they would carry NO marks. Your answer should simply look like this: [list=1]
[*]What will be unit cost for Material under FIFO costing method? XX
[*]What will be unit cost for Labour under FIFO costing method? XX
[*]What will be unit cost for Factory overhead under FIFO costing method? XX
[*]What will be equivalent production units for Material under FIFO costing method? XX
