Problem Set 1 (Problem No-3) : Inventories As On 1.4.2012
Problem Set 1 (Problem No-3) : Inventories As On 1.4.2012
Problem Set 1 (Problem No-3) : Inventories As On 1.4.2012
Inventories as on 1.4.2012
Materials 3000
WIP 4000
FG 8000
Inventories as on 31.3.2013
Materials 4000
WIP 6000
FG 7000
Direct Material Used (Material Purchased+ Opening Stock - Closing Stock) 109000
Prime Cost (Direct Material + Direct Labour + Direct Expenses) 184000
Other Expenses
Factory Overhead (FOH) (50% of Direct Labour) 32500
Gross Work Cost (Prime Cost + FOH) 216500
Adjustment for Inventory
(Add:Opening WIP ; Less: Closing WIP) -2000
Net Work Cost 214500
Non Manufacturing
Administration overhead (10% of Workcost) 21450
Cost of Production 235950
Selling and Distribution overhead (5% of sales) 13750
Adjustment for FG Inventory
COG AFS (Add Opening) 21750
COGS (Less Closing) 14750
Cost of Sales (Cost of Production + Adjustment for FG) 250700
Add: Profit Margin 24300
275000