Mgt402 Assignment No. 1 solution

Solution;

1)

Date	Received			Issued			Balance
	Gallons of material	Unit cost	amount	Gallons of material	Unit cost	amount	Gallons of material	Unit cost	amount
2008		Rs	Rs		Rs	Rs		Rs	Rs
MAR.1							250	5.00	1250
MAR.3	1200	10	12000				250 1200	5.00 10	1250 12000
MAR.7				250 400 650	5.00 10	1250 4000	800	10	8000
MAR13	150	10	1500				150 800	10 10	1500 8000
				80	10	800	70 800	10 10	700 8000
MAR29
MAR29							870	10	8700

CLOSING INVENTORY ACCORDING TO FIFO IS Rs. 8700.

2.

Rs.

Opening Inventory =250*5=1250

ADD. Net Purchases = (1200*10)-(80*10)

=12000-800

=11200

Material Available for use =1250+11200=12450

Less closing inventory =12450-8700

Direct Material Consumed =3750

Add Direct Labor Cost =3750+9325

Prime Cost =13075

Add FOH =13075*(1000*6)

Total Factory Cost =19075

Cost of goods to be manufactured =19075

Less Closing WIP =19075-2450

Cost of Goods Manufactured =16625

Cost of Goods to be sold =16625

Less Closing Finished Goods =16625-4530

Cost of Goods Sold At Normal =12095

Add Under Applied FOH =12095+1500

Cost of Goods Sold At Actual =13595

SUPPORTING CALCULATION

Actual FOH =7500

Applied FOH =6000

Under Applied FOH =1500