Question 3

The following transactions relate to the SHEHNILA CORP. for the month of November 2015:

Product - A

10,000 units

1,000 units

2,000 units

1 points

Product B

8,000 units

900 units

100 units

Production

Beginning Inventory

Ending Inventory

Unit Cost applicable to inventories and Production

Direct Material

Direct Labour

Factory Overhead

Rs. 4 per unit

Rs. 10 per unit

Rs. 7 per unit

Actual FOH was Rs. 182,400, under or over applied factory overhead is to be adjusted in Cost of Goods Sold.

Calculate Conversion Cost.

Rs. 3 per unit

Rs. 20 per unit

Rs. 14 per unit