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    Cost Accounting Paper

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    Haris Khan
    Cost Accounting Assignment Questions and Answers

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    Cost Accounting Paper

    Uploaded by

    Haris Khan
    12 views3 pages
    Cost Accounting Assignment Questions and Answers

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    © © All Rights Reserved

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    Cost Accounting Assignment Questions and Answers

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    12 views3 pages

    Cost Accounting Paper

    Uploaded by

    Haris Khan
    Cost Accounting Assignment Questions and Answers

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    COST ACCOUNTING

    VIEW SOLVED AT: https://www.answerslab.online/2021/04/cost-accounting-paper.html

    Q#1
    The Following Trail Balance has been extracted from the books of ABC Company on December 31st,
    2018:
    Debit Debit
    Descriptions Descriptions
    Rs. Rs.
    28,20
    Cash 0 Notes Payable 3,200
    Accounts Receivable 41,000 Accounts Payable 12,350
    Notes Receivable 23,000 Taxes Payable 1,500
    Material (1-1-2018) 31,800 Rent Payable 1,020
    Work in Process (1-1-2018) 4,000 Dividend Payable 500
    Finished Goods (1-1--2018) 11,700 Sales 135,000
    Prepaid Insurance 200 Common Stock 110,000
    Machinery & Equipment 93,500 Retained Earnings 34,570
    Purchased of Material 16,000 Accumulated Depreciation 20,000
    Carriage inward 520    
    Direct Labor 33,000    
    Indirect Material 8,520    
    Indirect Labor 5,580    
    Depreciation - Factory 5,400    
    Utility - Factory 6,500    
    Carriage outward 460    
    Advertising 175    
    Salesmen Salary 565    
    Foreman Salary 7,000    
    Administrative Cost 1,020    
      318,140   318,140

    During the year 70,000 units have been produced. The Following Further information are also
    available:

    Inventories at December 31st, 2018 Rs.


    Material 3,520
    Work in Process 2,500
    Finished Goods 10,000

    Note: The factory overhead cost applied at the rate of 100% of direct labor cost.
    The actual FOH cost incurred during the period Rs. 31,480.

    Required
    a) Statement of Cost of Goods Manufactured at December 31st, 2018. (Marks 5)
    b) Statement of Profit or Loss for the year ended December 31st, 2018. (Marks 5)
    Q # 2 (5 Marks)

    XYZ Incorporation provides the following financial data for the month of July 2020:

    Beginning Inventories 'Rs.'


    Direct Material 12,000
    WIP -
    Finished Goods -

    1. Purchased material on accounts for Rs. 200,000


    2. Defective material returned to supplier worth Rs. 5,000
    3. Material and labor issued to job during the month

      Direct material Direct Labor


    Job # 101 40,000 65,000
    Job # 102 50,000 80,000
    Job # 103 30,000 50,000
    Job # 104 25,000 40,000
    Indirect 5,000 15,000

    4. FOH rate is 120% of direct labor cost


    5. Actual FOH cost incurred on account Rs. 250,000

    Required
    a) Prepare journal entries to record the preceding transactions.

    Q # 3 (5 Marks)

    XYZ Equipment In. receives order from Shiraz Consultant Clinic on 15 th August. The company
    started its production on 18th of August and completed in 25th of August. The company collects its cost
    and revenue data by the job order cost accumulation procedure. For job number 505, the following
    data are available:

    Direct material Direct Labor FOH-Applied

    Date REQ. Amount Date Hours Cost Rs. 30 for each direct
    NO: Rs. Rs. labor hours
    8/18 400 4000 8/18 30 600 ?
    8/19 600 6000 8/19 40 800
    8/25 1000 10000 8/21 35 700
    Total 20000 8/23 50 1000
    8/25 60 1200
    Total 4300

    Other Information:

    1. Total Sales are 30% above cost.


    2. Marketing and selling expenses Rs. 1000
    3. Administrative expenses 1500.

    Required
    Enter the appropriate information on a job order cost sheet.

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