Q1

You are given the cost records of XY manufacturing company which manufacture a specialised equipment against customers order.

OMR

Raw material cost in the beginning - 18,800

Purchase of material 15,000 kgs@ 2 per kg - 30,000

Carriage on purchase - 900

Raw material cost at end - 11,000

Work in progress in the beginning - 3,500

Work in progress in the end - 2,500

Direct labour cost - 28,000

Depreciation on factory building - 660

Depreciation on office building - 350

Factory managers salary - 1500

Office managers salary - 1,600

Other factory overheads - 5,800

Other office overheads - 3,500

Opening stock of finished goods - 4,800

Closing stock of finished goods - 5,500

Selling and distribution overheads 12% of cost of goods sold

Selling price is determined at 15% on cost

Units produced and sold - 800 units

Required:

a. Prime cost

b. Works cost

c. Cost of production

d. Cost of goods sold

e. Cost of sale

f. Profit

g. Selling price per unit

Q2.

Consider opening work in progress in process II -7000 units - 55% complete; Units completed in process-II and transferred to next process is 6500 units; Closing work in progress 2500 units 60% complete. Assuming normal loss and abnormal loss as nil calculate:

a. Input into the process II( in units)

b. Equivalent units as per FIFO.