At the year end, the order was incomplete; only 200 units were fully completed and transferred to finished stock. Stock-taking of the work-in-progress revealed the following position: Materials in process 650 kgs. Material in hand, in shop (unprocessed) 200 kgs. Production in partly completed stage 1,300 units Extent of work performed: Upto the first operation 600 units Upto the second operation stage 400 units Upto the third operation stage 300 units Upto the fourth operation stage Nil Calculate the cost of the work-in-progress at the year end. Cost sheet showing cost of work-in-progress Material Cost Material in hand 200 kgs. @ 200 per kg." 40.000 10,000 * It is possible to exclude this from the cost of work-in-progress and include in the cost of materials in hand 13 Material in process 650 kgs. @ 200 per kg. 1,30,000 Less: Proportionate cost of scrap 650 1.29.350 1,69,350 Labour Cost Operation 1.600 units @20 12,000 Operation 11 - 400 units @ 45 18,000 Operation III - 300 units @ 65 19.500 49,500 Factory overhead 80% on direct labour 39,600 Total cost of work-in-progress 2.58.450 Illustration 4 The Alpha Manufacturing Company processed production through two department (1) Machining and (1) Finishing Overhead rates are predetermined on the basis of machine hours in the machine department and the direct labour wages in the finishing department. The figures for 2013-14 based on which the overhead rates were arrived at are furnished below: Machining Deptt Finishing Deptt. 3 Direct labour - wages 36,00.000 40,00,000 Factory overheads 80,00.000 60,00.000 Direct labour hours 24,00.000 50,00.000 Machine hours 20,00.000 5.00.000 The Cost Sheet for Job Order No. 1748 indicates the following: Machining Deptt Material consumed 350 Direct labour wages 345 Direct Labour hours 24 Machine hours 15 Finishing Deptt. 37 340 35 5 Assuming that the production order No. 1.748 consisted of 10 numbers of Part No. P-1865, prepare a cost sheet showing the unit cost of the part