Qno.1

On October 1, the Florida Company had the following inventories: Materials, $ 24,000; work in process, $ 12,000; and finished goods, $ 35,000. During the month, materials purchases totaled $ 56,000. Direct labor for October was $40,000, at a uniform wage of $ 6.40 per hour. Marketing and administrative expenses for the month amounted to 10% of net sales. Inventories on October 31 were as follows: materials, $ 20,000; work in process, $8,000; and finished goods, $ 40,000. Net sales for October totaled $ 200,000. Factory overhead is applied on the basis of $ 8 per direct labor hour. REQUIRED: a]. Prime Cost c]. Conversion Cost e]. Income from Operations[Net Income] b]. Cost of goods manufactured d]. Cost of goods sold.

Qno.2

Kaay Company's Cost of Good Sold for the month ended June 30, 1995 was 645,000. Ending Material Inventory was 10% higher than beginning Inventory and Work In Process ending Inventory was 80% of beginning Inventory. Factory overhead applied was 50% of Direct Labour. Other Information pertaining to inventories and production for the month of June, 1995 is as follows:

Beginning Inventories:June 1, 1995

Direct Material Rs. 340,000

Work - In - Process 270,000

Finished Goods 212,000

Material Purchased during the month 328,000

Finished Goods Inventory June 30, 1995 215,000

REQUIRED: A] Prepare Schedule of Cost of Goods Manufactured for the month of June 1995.

B] Prepare Schedule to Compute the Prime cost Incurred during the month.

C] Prepare Schedule to Compute the Conversion Cost charged to Work- in-Process during the