COST ACCOUNTING B.com-2 Regular Annual Examination 2015
|
|
- Spencer Watts
- 5 years ago
- Views:
Transcription
1 B.com-2 COST ACCOUNTING Compiled & Solved By: JAHANGEER KHAN
2 Q.1: MANUFACTURING CONCERN: Record of Muqeem and Baber shows the following information for 2015: Sales 500 T.V Sets Material Purchased Direct Labour FOH (2/3 of D/Labour) Selling Expense General Expenses Rs.1,000, ,000? 200,000 5% of sales 10% of sales Inventory Jan 01, 2015 Inventory Dec 31, 2015 Material Rs.50,000 No unfinished work on hand Finished Goods (50 T.V Sets) 70,000 Finished Goods (70 T.V Sets)? Material Rs.70,000 REQUIRED: (a) The number of units manufactured. (b) Income Statement for the year ended Dec 31, (c) Unit cost T.V manufactured. (d) Finished goods ending inventory using FIFO. (e) Gross Profit per unit sold. SOLUTION 1 (a): Units in Ending Finished goods 70 Add: Units Sold 500 Units Available for Sale 570 Less: Units in Beginning Finished goods (50) Number of Units Manufactured 520 SOLUTION 1 (b): COMPUTATION FOR COST OF GOODS MANUFACTURED Raw Material Used: Raw Material ( ) 50,000 Add: Raw Material Purchased 300,000 Raw Material Available for use 350,000 Less: Raw Material ( ) (70,000) Direct Material Used 280,000 Add: Direct Labour used (200,000 x3/2) 300,000 Prime Cost 580,000 Add: Factory Overhead 200,000 Cost of Goods Manufactured 780,000 MUQEEM AND BABER INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Sales 1,000,000 Less: Cost of Goods Sold: Finished goods ( ) 70,000 Add: Cost of goods Manufactured 780,000 Finished Goods Available for use 850,000 Less: Finished Goods ( ) (105,000) Cost Of goods Sold (745,000) Gross Profit 255,000 Less: Operating Expenses: Selling Expenses (1,000,000 x 5%) 50,000 pg. 1
3 General Expenses (1,000,000 x 10%) 100,000 Total Operating Expenses (150,000) Net income 105,000 SOLUTION 1 (c): Unit Cost of T.V Manufactured = COMPUTATION FOR UNIT COST OF T.V MANUFACTURED Unit Cost of T.V Manufactured = Unit Cost of T.V Manufactured = 1,500 SOLUTION 1 (d): COMPUTATION FOR FINISHED GOODS ENDING INVENTORY Finished Goods Ending Inventory = Units in Ending Finished Goods x Unit Cost of T.V Manufactured Finished Goods Ending Inventory = 70 x 1500 Finished Goods Ending Inventory = 105,000 SOLUTION 1 (e): Gross Profit per Unit Sold = COMPUTATION FOR GROSS PROFIT PER UNIT SOLD Gross Profit per Unit Sold = Gross Profit per Unit Sold = 510 Q.2: FACTORY LEDGER AND GENERAL LEDGER: During the month of January 2015 the following transactions were completed by Nafees Industries: (i) (ii) Purchased material Rs.90,000 and other manufacturing supplies Rs.17,520. Labour was consumed as follows: For direct purpose 58,400 For indirect purpose 10,000 (iii) Payroll totaling Rs.68,200 was paid. Company withheld wage 5% for income tax, 2% for social security tax and 5% for provident fund. The company contributes towards provident fund equal to the amount of withheld as provident fund. (iv) (v) (vi) (vii) Material was consumed as follows: For direct purpose 72,160 For indirect purpose 10,000 A summary of manufacturing expenses charged to production totaled Rs.44,000. Work finished and placed in stock Rs.130,000. All except Rs.22,000 of the finished goods were sold. Total sales of Rs.140,000 were on account. REQUIRED: Journal entries in general ledger and factory ledger. pg. 2
4 SOLUTION 2: NAFEES INDUSTRIES GENERAL LEDGER GENERAL JOURNAL S.no Particulars P/R Debit Credit 1. Factory Ledger 107,520 Voucher Payable 107,520 (To record raw material purchased) 2. Payroll 68,200 Income Tax (68,400 x 5%) 3,410 Provident Fund (68,400 x 2% ) 1,364 Social Securities (68,400 x 5%) 3,410 Accrued Payroll 60,016 (To record payroll of the month) 3 (a). Accrued Payroll 60,016 Voucher Payable 60,016 (To record voucher issued for accrued payroll) 3 (b). Voucher payable 60,016 Bank 60,016 (To record payment of accrued payroll) 3 (c). Factory ledger 68,200 Payroll 68,200 (To close factory payroll account) 4. Factory Ledger 3,410 Provident Fund 3,410 (To record contribution of provident fund) 5. Accounts Receivable 140,000 Sales 140,000 (To record sold goods on account) 6. Cost of Goods Sold 108,000 Factory Ledger 108,000 (To record cost of goods sold) NAFEES INDUSTRIES FACTORY LEDGER GENERAL JOURNAL S.no Particulars P/R Debit Credit 1. Raw Material 107,520 General Ledger 107,520 (To record raw material purchased) 2. Work in Process 58,400 Factory Overhead 10,000 Accrued Payroll 68,400 (To record direct and indirect labour used) 3. Accrued Payroll 68,200 General Ledger 68,200 (To record payroll sent to general office) pg. 3
5 S.no Particulars P/R Debit Credit 4. Work in Process 72,160 Factory overhead 10,000 Raw Material 82,150 (To record direct and indirect use of material) 5. Work in Process 44,000 Applied Factory Overhead 44,000 (To record manufacturing expenses charged to production) 6. Finished Goods 130,000 Work in Process 130,000 (To record goods completed and placed in stock) 7. General Ledger 108,000 Finished goods 108,000 (To record cost of goods sold ) Q.3: JOB ORDER COSTING: The following data relates to Raza Manufacturing Company for its operation for the year ended Dec 31, Raw material purchased on account Rs.200,000 Material issued to factory: Direct Rs.140,000 Indirect 20,000 Labour used: Direct labour for production 240,000 For general use 24,000 Other FOH cost incurred on account 180,000 of direct labour have been applied. Cost goods valued Rs.516,000 were transferred from factory to Godown as completed. Finished good costing Rs.66,000 were in the ending inventory and the rest were sold at 20% above cost. REQUIRED: (a) General journal entries to record the above transactions and to close the FOH account. (b) Work in process, Finished Goods and Factory Overhead accounts. SOLUTION 3 (a): RAZA MANUFACTURING COMPANY GENERAL JOURNAL S.no Particulars P/R Debit Credit 1. Raw Material 200,000 Accounts Payable 200,000 (To record purchase of raw material on account) 2. Work in Process 140,000 Factory Overhead 20,000 Raw Material 160,000 (To record material issued to factory) 3. Work in Process 240,000 Factory overhead 24,000 Accrued Payroll 264,000 (To record direct and indirect use of labour) pg. 4
6 S.no Particulars P/R Debit Credit 4. Factory Overhead 180,000 Accounts Payable 180,000 (To record factory cost incurred on account) 5. Work in Process ((240,000x90%)) 216,000 Applied Factory Overhead 216,000 (To record factory overhead applied to production) 6. Finished Goods 516,000 Work in Process 516,000 (To record goods completed and transferred out) 7. Cost of Goods Sold (516,000 66,000) 450,000 Finished Goods 450,000 (To record cost of goods sold) 8. Accounts Receivable (450,000 x 120/100) 540,000 Sales 540,000 (To record sold goods on account) 9. Cost of Goods Sold 8,000 Under Applied Factory Overhead 8,000 (To close under applied factory overhead) SOLUTION 3 (b): RAZA MANUFACTURING COMPANY GENERAL LEDGERS Work in Process 2. Raw Material 140, Finished goods 516, Accrued Payroll 240,000 Balance c/d 80, Applied Factory Overhead 216, , ,000 Balance b/d 80,000 Finished Goods 6. Work in Process 516, Cost of Goods sold 450,000 Balance c/d 66, , ,000 Balance b/d 66,000 Factory Overhead 2. 20, Work in Process 216, , Cost of Goods Sold 8, , , ,000 pg. 5
7 Q.4: FACTORY OVERHEAD COSTING: Factory overhead for Mustafa Manufacturing Company has been estimated as follows: Fixed FOH Cost Rs.30,000 Variable FOH Cost 90,000 Estimated Direct Labour Hours 20,000 Production for the month received 80% of the budgeted and the actual FOH cost totaled Rs.86,000. REQUIRED: (a) FOH Application Rate (b) Over or Under Applied FOH (c) Spending Variance (d) Ideal Capacity Variance SOLUTION 4 (a): COMPUTATION FOR FACTORY OVERHEAD APPLICATION RATE Fixed Overhead Rate (30,000/20,000) 1.5 Variable Overhead Rate (90,000/20,000) 4.5 Factory Overhead Application rate Rs.6/D.L.H SOLUTION 4 (b): COMPUTATION FOR OVER OR UNDER APPLIED FACTORY OVERHEAD Actual Overhead based on Standard Rate (20,000 x 6 x 80%) 96,000 Less: Actual Factory Overhead (86,000) Over Applied Factory Overhead 10,000 SOLUTION 4 (c): COMPUTATION FOR SPENDING VARIANCE Actual Factory Overhead 86,000 Less: Budgeted Cost Based on Actual Output: Fixed Overhead 30,000 Variable Overhead (20, x 80%) 72,000 Budgeted Cost Based on Actual Output (102,000) Spending Variance (Favorable) (16,000) SOLUTION 4 (d): COMPUTATION FOR IDLE CAPACITY Budgeted Cost Based on Actual Output 86,000 Less: Actual Overhead Based on Standard Rate (20,000 x 6 x 80%) (96,000) Idle Capacity Variance (10,000) Q.5: ALLOCATION OF SERVICE DEPARTMENTS OVERHEAD TO PRODUCTION DEPARTMENT: A company has decided to distribute the cost of service department by the simultaneous equation method. The producing departments are A 1, A 2 and the Service Departments are B 1, B 2. The monthly data are as follows. Service Department by B 1 B 2 Actual FOH cost to be distribution A 1 282,000 40% 50% A 2 255,000 50% 30% B 1 60, % B 2 52,800 10% REQUIRED: Total Factory overhead of Producing Department A 1 and A 2 after distribution of Service Department Cost. pg. 6
8 SOLUTION 5: COMPUTATIONS 1. TOTAL COST OF DEPARTMENT B 1: B 1 = 60, % B 2 B 1 = 60, (52, B 1 ) B 1 = 60, , B 1 B B 1= 70, B 1 = 70,560 B 1 = 70,560/0.98 B 1 = 72, TOTAL COST OF DEPARTMENT B 2: B 2 = 52, % B 1 B 2 = 52, (72,000) B 2 = 52, ,200 B 2 = 60, Cost Distribution of Department B 1: A 1 = 72,000 x 40% A 1 = 28,800 A 2 = 74,000 x 50% A 2 = 36,000 B 2 = 72,000 x 10% B 2 = 7, Cost Distribution of Department B 2: A 1 = 60,000 x 50% A 1 = 30,000 A 2 = 60,000 x 30% A 2 = 18,000 B 1 = 60,000 x 10% B 1 = 6,000 SCHEDULE OF FACTORY OVERHEAD DISTRIBUTION Producing Department Service Department Total Particulars A 1 A 2 B 1 B 2 Overhead Before Distribution 282, ,000 60,000 52, ,800 Overhead Distribution of Service Department: B 1 28,800 36,000 (72,000) 7, B 2 30,000 18,000 6,000 (60,000) Total Factory Overhead 341, , ,800 pg. 7
9 Q.6: INVENTORY LEDGER AND VARIANCE: SANA Company produces a product from one basic raw material. During one week of operation the material ledger card reflected the following: Opening Balance 1,400 Rs. peer Lb Received 1,000 Rs.1.80 peer Lb Issued 800 Lbs Issued 800 lbs Received 1,200 Rs.2.00 peer Lb Issued 800 Lbs Other Costs for the week were: Direct Labour Cost Rs.1,800 FOH Cost 1,490 1,770 units were completed and 1,500 units were sold. There was no beginning inventory of Finished goods and no work in process is left in process over the week end. REQUIRED: (a) Inventory Ledger Card under FIFO and LIFO method. (b) Ledger account for Material, Work in Process, Finished Goods and Cost of Goods Sold under FIFO method. SOLUTION 6 (a): SANA COMPANY INVENTORY LEDGER CARD PERPETUAL SYSTEM FIFO METHOD S.no Purchased Issued Balance Units Unit Cost Total Units Unit Cost Total Units Unit Cost Total 1. 1,400 2, ,800 1,400 1, ,240 1, , , , , , , ,440 2, ,440 1, ,400 2, ,200 2, ,40 1, ,400 pg. 8
10 SANA COMPANY INVENTORY LEDGER CARD PERPETUAL SYSTEM LIFO METHOD S.no Purchased Issued Balance Units Unit Cost Total Units Unit Cost Total Units Unit Cost Total 1. 1,400 2, ,800 1,400 1, ,240 1, , , , , , , ,280 2, , , , ,200 2, ,360 1, ,080 SOLUTION 6 (b): COMPUTATIONS 1. COST OF GOODS MANUFACTURED: Direct Material 4,040 Add: Direct Labour 1,800 Prime Cost 5,440 Add: Factory Overhead 1,490 Cost of Goods Manufactured 7, COST OF ENDING FINISHED GOODS: Per Unit Cost = Per Unit Cost = Per Unit Cost = Number of Units Manufactured 1,770 Less: Units Sold 1,500 Units in Ending Finished Goods 2,70 Cost of Ending Finished Goods = Units in Ending Finished Goods x Per Unit Cost Cost of Ending Finished Goods = 2,70 x 4.14 Cost of Ending Finished Goods = 1, COST OF GOODS SOLD: Cost of Goods Sold = Units Sold x Per Unit Cost Cost of Goods Sold = 1,500 x Cost of Goods Sold = 6,212 pg. 9
11 SANA COMPANY GENERAL LEDGERS Raw Material 1. Balance 2, Work in Process 1, Purchases 1, Work in Process 1, Purchases 2, Work in Process 1,440 Balance c/d 2,400 6,440 6,440 Balance b/d 2,400 Work in Process 3. Raw Material 1,280 Finished Goods 7, Raw Material 1, Raw Material 1,440 Accrued Payroll 1,800 Factory Overhead 1,490 7,330 7,330 Finished Goods Cost of Goods Manufactured 7,330 Cost of Goods Sold 6,212 Balance c/d 1,118 7,330 7,330 Balance b/d 1,118 Cost of Goods Sold Finished Goods 6,212 Balance c/d 6,212 6,212 6,212 Balance b/d 6,212 Q.7: LABOUR COSTING: 10 men crew works as team in processing department. Each is paid a bonus if his group exceeds the standard production of 200 kilogram per hour. For calculating the amount of bonus, the percentage by which the group production extends the standard is determined first. One half of this percentage is than applied to a wage rate of Rs.480 to determine the hourly bonus rate. Each man in the crew is paid a bonus for his groups excess production in addition to the wage at hourly rate. Production Record for the week is as follows: Day Hours Worked Production in Kg. Monday 79 16,040 Tuesday 80 17,599 Wednesday 74 16,200 Thursday 78 17,429 Friday 80 18,036 REQUIRED: On the basis of production records: (a) The Group Bonus for each day and for the week. pg. 10
12 (b) The weeks earning for each employee assuming that each worker earns Rs.480 per hour and each worked the same number of hours in the week. SOLUTION 7 (a): SCHEDULE OF BONUS Day Hours Worked (A) Production in Kg. Bonus Rate (B) Bonus (A) x (B) Monday 79 16, , Tuesday 80 17, ,743.2 Wednesday 74 16, , Thursday 78 17, , Friday 80 18, ,743.2 Total , COMPUTATIONS 1. STANDARD PRODUCTION: Standard Production = Total Hours Worked x Per Hour Standard Units Standard Production = 391 x 200 Standard Production = 78,200 Kg. 2. EXCESS PRODUCTION: Actual Production 85,304 Less: Standard Production (78,200) Excess Production 7, EXCESS PRODUCTION RATE: Excess Production Rate = x 100 Excess Production Rate = x 100 Excess Production Rate = 9.08% 4. BONUS RATE: Bonus Rate = 1/2 Wage Rate x Excess Production Rate Bonus Rate = 1/2 (480) x 9.08% Bonus Rate = 240 x 9.08% Bonus Rate = Rs SOLUTION 7 (b): COMPUTATION FOR WEEKLY EARNINGS OF EACH EMPLOYEE Hours Worked by Each Employee = Hours Worked by Each Employee = pg. 11
13 Hours Worked by Each Employee = 39.1 hours Regular Wage (39.1 x 480) 18,768 Add: Bonus (39.1 x 21.79) Weekly Earnings of Each Employee Rs.19, Q.8: PROCESS COSTING: The following information was taken from the books of Kashif Steel Work for the month of January Cost of units in process at beginning of Jan 2015 Rs.60,000 Cost of material placed in production 274,800 Direct Labour Cost incurred 168,000 FOH Cost incurred 201,600 The data extracted from the production records relating to the above process as follows: Units in process at beginning of Jan 2000 Units (40% completed as to material and 60% completed as to conversion cost) Units placed in production 11,000 Units Units in process at end 3,000 Units (75% completed as to material and 80% completed as to conversion cost) REQUIRED: (a) (i) Equivalent Production Unit. (ii) Total Cost of Units completed under (FIFO) Flow of Cost. (iii) Total Cost of Units in Process at the End. (b) General Journal Entries to record the cost charged to production and production completed. SOLUTION 8 (a) (i): COMPUTATION FOR UNITS COMPLETED Beginning Units 2,000 Add: Units Placed in production 11,000 Total Units in Production Process 13,000 Less: Ending Units (3,000) Units Completed 10,000 COMPUTATION FOR EQUIVALENT PRODUCTION UNITS Particulars Direct Material Direct Labour Factory overhead Units Completed 10,000 10,000 10,000 Less: Beginning Work in process Direct Material (2,000 x 40%) (8,00) Conversion (2,000 x 60%) (1,200) (1,200) 9,200 8,800 8,800 Add: Ending Work in Process Direct Material (3,000 x 75%) 2,250 Conversion (3,000 x 80%) 2,400 2,400 Equivalent Production Units 11,450 11,200 11,200 pg. 12
14 SOLUTION 8 (a) (ii): COMPUTATIONS 1. PER UNIT COST Cost Equivalent Units = Unit Cost Direct Material 274,800 11,450 = 24 Direct Labour 168,000 11,200 = 15 Factory Overhead 201,600 11,200 = 18 Per Unit Cost Rs TOTAL COST OF UNITS COMPLETED: Cost of Beginning 2,000 Units in Process: Cost of Beginning Work in Process 60,000 Add: Cost Added During the Month Direct Material (2,000 x 60% x 24) 28,800 Direct Labour (2,000 x 40% x 15) 12,000 Factory Overhead (2,000 40% x 18) 14,400 Total Cost Added During the Month 55,200 Total Cost of Beginning 2,000 Units in Process 115,200 Add: Cost of Remaining 8,000 Units (8,000 x 57) 456,000 Total Cost of Units Completed 571,200 SOLUTION 8 (a) (iii): COMPUTATION FOR TOTAL COST OF UNITS IN PROCESS AT THE END Direct Material (3,000 x 75% x 24) 54,000 Direct Labour (3,000 x 80% x 15) 36,000 Factory Overhead (3,000 x 75% x 18) 43,200 Total Cost of Units in Process at the End 133,200 SOLUTION 8 (b): KASHIF STEEL WORK GENENRAL JOURNAL S.no Particulars P/R Debit Credit 1. Work in Process 644,400 Raw Material 274,800 Accrued Payroll 168,000 Factory Overhead 201,600 (To record cost charged by the department during the month) 2. Work in Process 571,200 Work in process 571,200 (To record goods completed and transferred out) pg. 13
B.COM 2 PRIVATE COST ACCOUNTING. B.com-2 PRIVATE Annual Examination COMPILED & SOLVED BY: Jahangeer Khan
B.COM 2 PRIVATE COST ACCOUNTING B.com-2 PRIVATE Annual Examination 20 COMPILED & SOLVED BY: Jahangeer Khan 20 Q.1: MANUFACTURING CONCERN: Consider the following information taken from the books of SAHAB
More informationB.COM II COST ACCOUNTING
The workings under the heading of Additional Working are not required according to the requirement of the examiner. These are only for understanding the solutions. For more help, visit 2014 B.COM II COST
More informationCOST ACCOUNTING b.com part II Regular & Private (SUPPLEMENTARY) Solved Paper. Compiled & Solved by: Sameer Hussain
COST ACCOUNTING b.com part II 2014 Regular & Private (SUPPLEMENTARY) Solved Paper Compiled & Solved by: Sameer Hussain Instructions: (1) Attempt any FIVE questions. (2) All questions carry equal marks.
More information1. Cost accounting involves the measuring, recording, and reporting of: A. product costs. B. future costs. C. manufacturing processes.
1. Cost accounting involves the measuring, recording, and reporting of: A. product costs. B. future costs. C. manufacturing processes. D. managerial accounting decisions. 2. In accumulating raw materials
More informationCOST OF GOODS MANUFACTURES B.COM. PART II
COST OF GOODS MANUFACTURES B.COM. PART II Q#1 Following are the balances appear on the Trial Balance of SAMREEN & Co. for the year ended April 30, 1980. Inventory of Goods in Process April, 01 Rs.109,000
More informationTime: 60 Minutes Record : 10 Skill Test : 20 Total Marks : 30 Note: Problems are to be solved by using computers (Excel or any accounting package).
Computer Lab - Practical Question Bank FACULTY OF COMMERCE, OSMANIA UNIVERSITY ----------------------------------------------------------------------------------------------------- B.Com (General) III
More informationChapter 2. Job Order Costing and Analysis QUESTIONS
Chapter 2 Job Order Costing and Analysis QUESTIONS 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between
More informationREVISION: MANUFACTURING 12 SEPTEMBER 2013
REVISION: MANUFACTURING 12 SEPTEMBER 2013 Lesson Description In this lesson we: Revise ledger accounts and the production cost statement Key Concepts Ledger Accounts for Manufacturing Differences between
More informationOf the following manufacturing operations, which is the best suited to the utilization of a job order system?
Current Quiz MGT 402 Solved by Atif Ghafoor For more help contact with at (ofakatif@yahoo.com) Page 1 Of the following manufacturing operations, which is the best suited to the utilization of a job order
More informationCOST OF GOODS MANUFACTURED & SOLD STATEMENT
COST OF GOODS MANUFACTURED & SOLD STATEMENT In order to understand the financial and cost statement of a concern we should clear about the procedure adopted by trading concern and manufacturing concern
More informationChapter 2. Job Order Costing and Analysis QUESTIONS
Chapter 2 Job Order Costing and Analysis QUESTIONS 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between
More informationChapter 3. Accounting for Labor
Chapter 3 Accounting for Labor Learning Objectives LO1 Distinguish between features of hourly rate and piece-rate plans. LO2 Specify procedures for controlling labor costs. LO3 Account for labor costs
More informationANIL SHARMA S CLASSES
ANIL SHARMA S CLASSES {Marks: 100} (COSTING PAPER-FULL) {Time: 3 Hours} ----------------------------------------------------------------------------------------------------- Q-1: What is meant by cost
More informationLOYOLA COLLEGE (AUTONOMOUS), CHENNAI
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034 B.Com. DEGREE EXAMINATION CORPORATE SECRETARYSHIP FOURTH SEMESTER APRIL 2016 BC 4504/BC 5501 COST ACCOUNTING Date: 22-04-2016 Dept. No. Max. : 100 Marks Time:
More informationB.Com II Year (Hons.) Cost Accounting Model Paper I
Max. Marks: 100 B.Com II Year (Hons.) Cost Accounting Model Paper I Durations: 3 Hrs. Attempt all the questions. All Questions are compulsory, each question carry 20 marks. Unit I 1. A Ltd. Is the manufacturer
More informationFinal Examination Semester 3 / Year 2011
Final Examination Semester 3 / Year 2011 COURSE : COST ACCOUNTING COURSE CODE : ACCT2113 TIME : 2 1/2 HOURS DEPARTMENT : FINANCE AND ACCOUNTING LECTURER : WONG SENG WEE Student s ID : Batch No. : Notes
More informationWhich of the following is correct? Select correct option: Units sold=opening finished goods units + Units produced Closing finished goods units Units
Which of the following is correct? Units sold=opening finished goods units + Units produced Closing finished goods units Units Sold = Units produced + Closing finished goods units - Opening finished goods
More informationJOB ORDER COSTING. LO 1: Cost Systems. Determine whether job order costing or process costing would be more appropriate for each industry.
JOB ORDER COSTING Terms Cost Accounting Process Cost System Job Order Cost System LO 1: Cost Systems Job-Order Costing Used for custom or unique items Each job is accounted for separately Measures cost
More informationACCT Professor Johnson Lecture Notes Chapter 16: PROCESS COSTING AND ANALYSIS
PROCESS OPERATIONS ACCT 102 - Professor Johnson Lecture Notes Chapter 16: PROCESS COSTING AND ANALYSIS In Chapter 15, we studied the job order cost accounting system used when a company manufactures products
More informationUNIT 2 : FINAL ACCOUNTS OF MANUFACTURING ENTITIES
7.63 UNIT 2 : FINAL ACCOUNTS OF MANUFACTURING ENTITIES LEARNING OUTCOMES After studying this unit, you will be able to: Understand the purpose of preparing Manufacturing Account. Learn the items to be
More informationProfessor Vipin Labour Cost
Labour Cost Labour cost is a second major element of cost. The control of labour cost and its accounting is very difficult as it deals with human element. Labour is the most perishable commodity and as
More informationCOST AND MANAGEMENT ACCOUNTING
EXECUTIVE PROGRAMME COST AND MANAGEMENT ACCOUNTING SAMPLE TEST PAPER (This test paper is for practice and self study only and not to be sent to the institute) Time allowed: 3 hours Maximum marks : 100
More informationChapter 17 Job Order Costing Study Guide Solutions Fill-in-the-Blank Equations. Exercises. 1. Estimated activity base. 2. Underapplied. 3.
Chapter 17 Job Order Costing Study Guide Solutions Fill-in-the-Blank Equations 1. Estimated activity base 2. Underapplied 3. Overapplied Exercises 1. An automobile manufacturer produces various lines of
More informationWork4Me Managerial Accounting Simulations. Problem Eight
Work4Me Managerial Accounting Simulations 1 st Web-Based Edition Problem Eight Standard Costing and Variances South Yuba Milling Company Page 1 INTRODUCTION You will enter Transactions involving (1) the
More informationWork4Me Managerial Accounting Simulations. Problem Nine
Work4Me Managerial Accounting Simulations 1 st Web-Based Edition Problem Nine Flexible Budgeting and Overhead South Yuba Milling Company Page 1 INTRODUCTION You will enter transactions involving (1) the
More informationAGENDA: JOB-ORDER COSTING
TM 3-1 AGENDA: JOB-ORDER COSTING A. The documents in a job-order costing system. 1. Materials requisition form. 2. Direct labor time ticket. 3. Job cost sheet. B. Applying overhead using a predetermined
More information1). Fixed cost per unit decreases when:
1). Fixed cost per unit decreases when: a. Production volume increases. b. Production volume decreases. c. Variable cost per unit decreases. d. Variable cost per unit increases. 2). Prime cost + Factory
More informationComposed & Solved Hafiz Salman Majeed Vu Askari Team
MGT402 Current Online Quiz#3.Nearly 300 MCQ s Solved. Question # 1 of 15 ( Start time: 03:53:53 AM ) Total Marks: 1 A chemical process has normal wastage of 5% of input. In a period, 3,500 Kg of material
More informationQUESTIONS. any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 2 Job Order Costing and Analysis QUESTIONS 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between
More informationCHAPTER 2. Job Order Costing 1, 2, 3, 4 5, 6, 7, 8 1, 2, 3, 4
CHAPTER 2 Job Order Costing ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Explain the characteristics and purposes of cost accounting.
More informationC H A P T E R 8 VALUATION OF INVENTORIES: A COST-BASIS APPROACH
C H A P T E R 8 VALUATION OF INVENTORIES: A COST-BASIS APPROACH Inventories are: items held for sale, or goods to be used in the production of goods to be sold. Businesses with : Intermediate Accounting
More informationFull file at
Chapter 02 Job Order Costing and Analysis True / False Questions 1. A manufacturing company that uses a cost accounting system normally has only two inventory accounts: Finished Goods Inventory and Goods
More informationPROBLEMS INVENTORY VALUATION (1-6)
Problems Accounting 21 PROBLEMS INVENTORY VALUATION (1-6) Problem # 21.1: Use the following information of Fatima Malik and Co. A company just starting business made the following four inventory purchases
More informationCHAPTER 20 JOB ORDER COST ACCOUNTING SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY. True-False Statements
CHAPTER 20 JOB ORDER COST ACCOUNTING SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1 K 8. 2 K 15. 2 K 22.
More informationFull file at Job Order Costing and Analysis QUESTIONS
Chapter 2 Job Order Costing and Analysis QUESTIONS 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between
More informationFull file at QUESTIONS
Chapter 2 Job Order Costing and Analysis QUESTIONS 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between
More informationINTER CA MAY PAPER 3 : COST AND MANAGEMENT ACCOUTING Branch: Multiple Date: Page 1
INTER CA MAY 2018 PAPER 3 : COST AND MANAGEMENT ACCOUTING Branch: Multiple Date: Note: Question 1 is compulsory. Attempt any five from the rest. Note: All questions are compulsory. Question 1 (5 Marks
More informationCHAPTER 17 (FIN MAN); CHAPTER 2 (MAN) JOB ORDER COST SYSTEMS
CHAPTER 17 (FIN MAN); CHAPTER 2 (MAN) JOB ORDER COST SYSTEMS Number Objective Description Difficulty Time AACSB IMA SS GL EO17(2)-1 17-1 Easy 5 min Analytic Cost Management EO17(2)-2 17-1 Easy 5 min Analytic
More informationContents ADJUSTING THE ACCOUNTS. Analyze Accounts and Prepare Adjusting Entries 43. Learning Goal 4: Explain the Meaning of Accounting Period 7
Contents Review The Essential Accounts for a Corporation 1 The Accounts For a Corporation 1 Equity Accounts 1 Corporate Financial Statements: Quick Review 2 SECTION I Goal 1: ADJUSTING THE ACCOUNTS Explain
More informationMGT402 - Cost & Management Accounting Quizzes mega file solved by Muhammad Afaaq & Maha Syed
MGT402 - Cost & Management Accounting Quizzes mega file solved by Muhammad Afaaq & Maha Syed Afaaqtariq233@gmail.com Asslam O Alikum MGT402 - Cost & Management Accounting Quizzes mega file solved by Muhammad
More information2. Standard costs imply a) Predetermined cost for a period b) Incurred cost c) Conversion cost d) Incremental cost
QUESTION BANK PAPER: COST ACCOUNTING COURSE: B.Com (Semester IV) MCQs 1. The basic objective of cost accounting is a) Recording of cost b) Reporting of cost c) Cost control d) EarningProfit 2. Standard
More informationDEEPAK GUPTA CLASSES
COST SHEET Q1. A Ltd. has a capacity to produce 100,000 units of the product every month. Its work costs at varying levels of production is as under: LEVEL WORK COST (Rs.per unit) 10% 400 20% 390 30% 380
More informationCHAPTER 2. Job Order Costing. Brief A B Study Objectives Questions Exercises Do It! Exercises Problems Problems
CHAPTER 2 Job Order Costing ASSIGNMENT CLASSIFICATION TABLE Brief A B Study Objectives Questions Exercises Do It! Exercises Problems Problems 1. Explain the characteristics 1, 2, 3, 4 and purposes of cost
More informationWork4Me Managerial Accounting Simulations. Problem Two
Work4Me Managerial Accounting Simulations 1 st Web-Based Edition Problem Two Job-Order Costing Elmwood Manufacturing, Incorporated Page 1 INTRODUCTION Elmwood Manufacturing, Incorporated operates in a
More informationCOST SHEET. Samir K Mahajan
COST SHEET Samir K Mahajan COMPONENTS OF TOTAL COST Prime cost: It is the aggregate of direct material cost, direct labour cost and direct expenses. Prime cost or Direct cost = Direct materials + Direct
More informationUnit 1 Cost Accounts, Unit Costing & Reconciliation. (a) Marginal Costing (b) Job Costing (c) Batch Costing (d) Contract Costing
Unit 1 Cost Accounts, Unit Costing & Reconciliation 1.Which one of the following is not a method of costing? (a) Marginal Costing (b) Job Costing (c) Batch Costing (d) Contract Costing 2. Which one of
More informationrate is used to apply overhead costs to products. Our purpose in this section is to provide a detailed example of cost flows in an ABC system.
Appendix 6A Cost Flows in an -Based Costing System 6A-1 Cost Flows in an -Based Costing System In Chapter 4, we discussed the flow of costs in a job-order costing system. The flow of costs through raw
More informationSECTION I. Sh ,000 10,200 16,680 14,000 2,600 4,200 13,300 2,520 1,600 10,500 12, ,000
QUESTION ONE SECTION I Wangu Manufacturing Company Ltd. is located at the industrial area in Nairobi. The company uses four different machine groups, A, B, C and D in its manufacturing process. The overhead
More informationA325 Exam 1 review Spring, 2010
A325 Exam 1 review Spring, 2010 The exam is seven problems (each with subsidiary questions) and you have ONE HOUR AND FIFTEEN minutes (1:15) to complete it. You are permitted to bring one page of notes
More informationManagement Accounting
THE PROFESSIONALS ACADEMY OF COMMERCE Management Accounting Mock Exam Summer-2015 May 21, 2015 Module : F (Additional reading time - 15 minutes) 100 marks 3 hours Q.1 ABC Company has received an enquiry
More informationModule 10 : Product and Process Costing. Lecture 1 : Product and Process Costing. Objectives
Module 10 : Product and Process Costing Lecture 1 : Product and Process Costing Objectives In this lecture you will learn the following Introduction. Product costing. Job costing. Process costing. Cost
More informationChapter 20: Job Order Costing
Chapter 20: Job Order Costing DO IT! 1 Accumulating Manufacturing Costs During the current month, Ringling Company incurs the following manufacturing costs: (a) Raw material purchases of $4,200 on account.
More informationGatsby s Accounting System and Policies Designed by Regina Rexrode Copyright - Armond Dalton
Gatsby s Accounting System and Policies a Images used on the front cover and throughout this book were obtained under license from Shutterstock.com 2017, by Armond Dalton Publishers, Inc. All rights reserved.
More informationPOLYTECHNIC OF NAMIBIA SCHOOL OF ECONOMICS AND FINANCE DEPARTMENT: ACCOUNTING. Cost & Management Accounting 101-2"d OPPORTUNITY
POLYTECHNIC OF NAMIBIA SCHOOL OF ECONOMICS AND FINANCE DEPARTMENT: ACCOUNTING 06DPAF Diploma in Accounting and Finance COURSE CODE: COURSE: CMA512S Cost & Management Accounting 101-2"d OPPORTUNITY DATE:
More informationPROCESS COSTING FIRST-IN FIRST-OUT METHOD
PROCESS COSTING FIRST-IN FIRST-OUT METHOD Key Terms and Concepts to Know Differences between Job-Order Costing and Processing Costing Process costing is used when a single product is made on a continuous
More informationBasic Costing Guidance
Basic Costing Guidance The Association of Accounting Technicians April 2010 Basic costing (BCCG) Introduction Please read this document in conjunction with the standards for all relevant units. Basic Principles
More informationFFQA 1. Complied by: Mohammad Faizan Farooq Qadri Attari ACCA (Finalist) Contact:
FFQA 1 Objective of IAS 2 The objective of IAS 2 is to prescribe the accounting treatment for inventories. It provides guidance for determining the cost of inventories and for subsequently recognising
More informationSYLLABUS. Class B.Com IV Sem. (All) Subject: Cost Accounting
CLASS:-B.Com. IV Semester SYLLABUS Class B.Com IV Sem. (All) Subject: Cost Accounting Unit-I Unit- II Unit III Unit IV Unit V Cost: Meaning, Concept and Classification. Elements of Cost, Nature & Importance,
More informationPaper T4. Accounting for Costs. Thursday 10 December Certified Accounting Technician Examination Intermediate Level
Certified Accounting Technician Examination Intermediate Level Accounting for Costs Thursday 10 December 2009 Time allowed: 2 hours This paper is divided into two sections: Section A ALL 20 questions are
More informationMGT402 Cost Accounting
MGT402 Cost Accounting Which of the following statement measures the financial position of the entity on particular time? Income Statement Balance Sheet Cash Flow Statement Statement of Retained Earning
More informationWeek 4 Chapter 4 MATERIALS COSTING. FNSACC507A Provide Management Accounting Information
Week 4 Chapter 4 MATERIALS COSTING FNSACC507A Provide Management Accounting Information In this lesson you will learn 1. About the documents used to cost and control factory materials. 2. How to prepare
More informationSection A: Summary Content Notes
COST ACCOUNTING 30 JULY 2015 Section A: Summary Content Notes MANUFACTURING ACCOUNTS: NEW LEDGER ACCOUNTS New Ledger Accounts pertaining to manufacturing concerns are divided into the following categories:
More informationIII B.Com [ ] Semester V Core: Cost Accounting 502C Multiple Choice Questions.
1 of 36 8/28/2013 10:47 PM Dr.G.R.Damodaran College of Science (Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Reaccredited at the 'A' Grade Level by the NAAC and ISO 9001:2008
More informationAkuntansi Biaya. Modul ke: 09FEB. Direct Material Cost. Fakultas. Diah Iskandar SE., M.Si dan Nurul Hidayah,SE,Ak,MSi. Program Studi Akuntansi
Modul ke: Akuntansi Biaya Direct Material Cost Fakultas 09FEB Diah Iskandar SE., M.Si dan Nurul Hidayah,SE,Ak,MSi Program Studi Akuntansi Effective Cost Control Specific assignment of duties and responsibilities.
More informationLevel 3 Accounting, 2005
For Supervisor s 3 9 0 5 0 2 Level 3 Accounting, 2005 90502 Process financial information for a manufacturing job cost subsystem Credits: Three 2.00 pm Tuesday 22 November 2005 Check that the National
More informationTOPIC 7 - IAS 2 - INVENTORIES
TOPIC 7 - IAS 2 - INVENTORIES Objective of IAS 2 to prescribe how to account for inventories. What are inventories? (a) Goods purchased for resale (b) Finished goods produced (c ) Work in progress (d)
More informationFill-in-the-Blank Equations. Exercises
Chapter 15 (1) Introduction to Managerial Accounting Study Guide Solutions 1. Merchandise available for sale 2. Cost of merchandise sold Fill-in-the-Blank Equations 3. Cost of goods manufactured during
More informationCHAPTER 5: MERCHANDISING OPERATIONS
CHAPTER 5: MERCHANDISING OPERATIONS CHAPTER SYNOPSIS Chapter 5 first compares a service business with a merchandising business and then discusses the purchase and sale of merchandise inventory. The chapter
More informationACCT 102 GROUP PROJECT INSTRUCTIONS
ACCT 102 GROUP PROJECT INSTRUCTIONS In the business world you will be required to communicate and coordinate projects and results with coworkers and supervisors, therefore, it is up to the group to decide
More informationTopic 4. Session Objectives. Inventory Adjustments. Session Objectives. Inventory
Session Objectives Topic 4 Inventory Understand the need for adjustment for inventory in preparing financial statements Describe how opening and closing inventory appears in the profit and loss accounts
More informationINTER CA NOVEMBER 2018
Answer 1 INTER CA NOVEMBER 2018 Sub: COSTING Topics Introduction, Cost Sheet, Standard Costing, Integral and Non- Integral Accounts, Activity Based Costing Test Code N14 Branch: Multiple Date: Note : All
More information` 16,667 ` 3,33,340. = 16, MT Truck: x = 14,167
INTER CA MAY 2018 COSTING Topic: Operating Costing,, Budgetary Control, Integral and Non Integral, Cost Sheet, Process Costing, Materials. Test Code M21 Branch: MULTIPLE Date: 14.01.2018 (50 Marks) Note:
More informationTYPES OF COST CLASSIFICATIONS CLASSIFICATION BY BEHAVIOR
18-11 C 2 Cost TYPES OF COST CLASSIFICATIONS CLASSIFICATION BY BEHAVIOR Cost Activity Activity Cost Cost behavior refers to how a cost will react to changes in the level of business activity. Total fixed
More informationAccounting Principles: A Business Perspective, 8e Chapter 7: Measuring and Reporting Inventories
Accounting Principles: A Business Perspective, 8e Chapter 7: Measuring and Reporting Inventories Inventories and of Goods Sold For merchandising companies, inventory is often the largest asset on the balance
More informationCost Systems. Terms Cost Accounting Process Cost System Job Order Cost System
Terms Cost Accounting Process Cost System Job Order Cost System Cost Systems Job-Order Costing Used for custom or unique items Each job is accounted for separately Measures cost based on completed job
More informationExercise E21-1 page 886. (a) Factory Labor 103,000 Factory Wages Payable 90,000 Employer Payroll Taxes Payable 9,000
Exercise E21-1 page 886 (a) Factory Labor 103,000 Factory Wages Payable 90,000 Employer Payroll Taxes Payable 9,000 Employer Fringe Benefits Payable 4,000 (b) Work in Process Inventory 87,550 Manufacturing
More informationIM111 INDUSTRIAL RELATIONS
IM111 INDUSTRIAL RELATIONS Cost Analysis What is Cost? Costis the amount of money paid or payable to achieve a specific objective, e.g. the acquirement of materials, property, or services. 2 Is Cost Really
More informationFinancial Accounting and Auditing Paper-III Financial Accounting
Revised Syllabus of the Courses of B.Com. Programme at T.Y.B.Com. with Effect from the Academic Year 2015-2016 for IDOL Students Financial Accounting and Auditing Paper-III Financial Accounting SECTION
More informationCOST SHEET. Samir K Mahajan
COST SHEET Samir K Mahajan COMPONENTS OF TOTAL COST Prime cost or Direct cost : It is the aggregate of direct material cost, direct labour cost and direct expenses. i.e. Prime cost or Direct cost = Direct
More informationHeintz & Parry. 20 th Edition. College Accounting
Heintz & Parry 20 th Edition College Accounting Chapter 13 Accounting for Merchandise Inventory 1 Explain the impact of merchandise inventory on the financial statements. Errors in inventory will cause
More informationMGT402 Cost and management accounting. All online solved quiz by Fahid Mehmood (22/2/2014)
MGT402 Cost and management accounting All online solved quiz by Fahid Mehmood (22/2/2014) Figure 1 Hope this file will help you n remember me in your prays Ist quiz solved by Fahid Mehmood (11/11/2013)
More informationGeneva CUSD 304 Content-Area Curriculum Frameworks Grades 6-12 Business
Geneva CUSD 304 Content-Area Curriculum Frameworks Grades 6-12 Business Mission Statement In the Business Department, our mission is to: Provide a variety of subject areas. Introduce students to current
More information10 hour 6 hour. 5 hour 3 hour
Absorption and Marginal Costing HKDSE (2017, 6) (Cost-Volume-profit analysis) Nice Company commenced business on 1 January 2016. It produces a single product, M1. The income statement for the year ended
More informationSyllabus: Accounting
Course Overview: Accounting is the key to opening the door to the business world and that is why it is called the "language of business." Every business in our society is impacted by accounting-based decisions.
More informationType of Inventory. OVERVIEW In case of manufacturing concerns. Stores and Spares. Formulae for Determining Cost of Inventory
CHAPTER 4 INVENTORIES LEARNING OUTCOMES After studying this chapter, you will be able to: Understand the meaning of term 'Inventory'. Learn the technique of Specific identification method, FIFO, Average
More informationCHAPTER 8: INVENTORY
CHAPTER 8: INVENTORY Inventory Categories Merchandise inventory - ready for sale units that are unsold at the end of the fiscal period raw materials inventory - costs assigned to goods and materials on
More informationSummerset Fencing. Module 2. An Algorithmic Practice Set. Featuring Job- Order Costing and JIT Inventories. 1 st Web- Based Edition
Summerset Fencing An Algorithmic Practice Set Featuring Job- Order Costing and JIT Inventories 1 st Web- Based Edition Module 2 TRANSACTIONS for JUNE 10 to JUNE 16 Page 1 TRANSACTIONS FOR JUNE 10-16 Did
More informationProcess Costing Joint and By Product CA Past Years Exam Question
CA R. K. Mehta Process Costing Joint and By Product CA Past Years Exam Question Question : 1 May, 2012 A product passes through two processes A and B. During the year, the input to Process A of Basic raw
More informationSubject: Accounting Calendar: Timeframe: 9 Weeks
Subject: Accounting Calendar: Timeframe: 9 Weeks Level/Grade: Secondary 10-12 : Starting a Proprietorship Define accounting terms related to starting a service business organized as a proprietorship (obj1)
More information532 Principles of Cost Accounting
GLOSSARY A Absorption (or full) costing. A method of accounting for manufacturing costs that charges both fixed and variable costs to the product. Account analysis method. See Observation method. Accounting
More informationIAS - 02 INVENTORIES
IAS - 02 INVENTORIES Objective To prescribe the accounting treatment for inventories. Scope All inventories except: (a) (b) Financial instruments (see IAS 32 Financial Instruments: Presentation and IFRS
More informationSQA Advanced Unit Specification General. information for centres Unit title: Cost Accounting. Unit code: HP5H 47
General information for centres Unit title: Cost Accounting Unit code: HP5H 47 Unit purpose: This Unit is designed to introduce candidates to costing techniques that may be utilised within a cost accounting
More informationChapter 02 - Cost Concepts and Cost Allocation
Chapter 02 - Cost Concepts and Cost Allocation Student: 1. Product costs for a manufacturing company consist of direct materials, direct labor, and overhead. 2. Period cost and product cost are synonymous
More informationChapter 02 - Cost Concepts and Cost Allocation
Chapter 02 - Cost Concepts and Cost Allocation Student: 1. Product costs for a manufacturing company consist of direct materials, direct labor, and overhead. 2. Period cost and product cost are synonymous
More informationTHE PROFESSIONALS ACADEMY OF COMMERCE Mock Exam, Summer-2015 Management Accounting (Solution)
THE PROFESSIONALS ACADEMY OF COMMERCE Mock Exam, Summer-2015 Management Accounting (Solution) Answer to Q-1 Minimum price for making 500 units of AK 100 Materials: Rs. X (500 units 4kg) Rs.8 16,000 Y (500
More informationValuation of inventories
Valuation of inventories The sale of inventory at a price greater than total cost is the primary source of income for manufacturing and retail businesses. Inventories are asset items held for sale in the
More informationACCOUNTING FOR MERCHANDISING ACTIVITIES
Chapter 6 ACCOUNTING FOR MERCHANDISING ACTIVITIES Presented by: Endra M. Sagoro Economic Faculty YSU endra_ms@uny.ac.id Operating Cycle of a Merchandising Company Cash Accounts Receivable 2. Sale of merchandise
More informationChapter 8 Inventories: Measurement
Chapter 8 Inventories: Measurement QUESTIONS FOR REVIEW OF KEY TOPICS Question 8 1 Inventory for a manufacturing company consists of (1) raw materials, (2) work in process, and (3) finished goods. Raw
More informationCosting Group 1 Important Questions for IPCC November 2017 (Chapters 1 5)
Costing Group 1 Important Questions for IPCC November 2017 (Chapters 1 5) CHAPTER 1 INTRODUCTION AND COST SHEET 1. Given below is a list of eight industries. Give the method of costing against each industry.
More information6) Items purchased for resale with a right of return must be presented separately from other inventories.
Chapter 8 Cost-based Inventories and Cost of Sales 1) Inventories are assets consisting of goods owned by the business and held for future sale or for use in the manufacture of goods for sale. Answer:
More information