Question - 1

The following information was taken from the books of Hilal Manufacturing Company for

the month of January 1996

Cost of Units in process at beginning: January 1, 1996 Rs. 30,000

Cost of Raw Material used 74,000

Direct Labour cost incurred 57,600

Factory Overhead Cost incurred 43,200

The data extracted from the production report relating to above process are as follows:

Units in process at beginning of January

[40% complete to material and 60% complete to conversion cost] 5,000 units

Units placed in production during January 13,000 units

Units in process at end of January 31

[60% complete to material and 80% as to conversion cost] 3,000 units.

Assume Any Method of your Choice (FIFO or Weighted Average)

Required:

Equivalent Production Unit, Unit Cost,

The total cost of unit competed and Work in process at end.

Question - 2

The following information was obtained from department's quantity schedule:-

Opening Units in process 5,000 (50% of the units were completed 70%, 30% of the units were

completed 40% & balance were completed 20%)

Units received from preceding department 30,000

Ending Units Still in Process 10,000 (40% of the units were 50% completed, 35% were 40% completed

and remaining were 30% completed)

Cost of Raw Material used Rs. 212,800, Cost of Direct Labour was Rs 133,000 and FoH is

applied at 80% of Direct Labour.

Assume Any Method of your Choice (FIFO or Weighted Average)

Required Determine i) Equivalent Production in Units ii) Cost of One Unit

Question - 3

Read, Inc, instituted a new process in October, during which it started 10,000 units in department A. Of the

units started 1,000 units, a normal number were lost during the process; 7,000 were transferred to

department B; and 2,000 remained in work in process inventory at the end of the month, 100% complete

as to materials and 50% complete to conversion cost. Materials and conversion costs of Rs. 27,000 & Rs.

40,000 respectively, were charged to the department in October.

Required: Total cost transferred to Department B.