Iqbal Corporation produces and sells a single product, has provided its contribution format income statement for March.

Sales (17,000 units)

Rs. 2,210,000

Variable Expenses

1,530,000

Contribution Margin

680,000

Fixed Cost

250,000

Net Profit

430,000

Number of units to be sold so that target profit becomes equal to Rs. 466,000?

2

ABC Corporation uses the weighted-average method in its process costing system. The Assembly Department started during the month with 15,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. An additional 130,000 units were transferred in from the preceding department during the month to begin processing in the Assembly Department. During the month 125,000 units were completed in the Assembly Department and transferred to the next processing department. There were 14,000 units in the ending work in process inventory of the Assembly Department that were 40% complete with respect to conversion costs.

What were the equivalent units for conversion costs in the Assembly Department for the month?

3

XYZ Corporation uses a process costing system to collect costs related to the production of its ice-cream flavored cola. The cola is first processed in a Mixing Department at Health and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to XYZ's two departments for the month of January:

Mixing

Bottling

Cases of cola in work in process, January1...................................

25,000

9,000

Cases of cola completed/transferred out duringJanuary..........................

110,000

?

Cases of cola in work in process, January31.................................

7,000

19,000

How many cases of cola were completed and transferred to Finished Goods Inventory during January?

4

I.A Corporation uses the weighted-average method in its process costing system. The Painting Department is the second department in its production process. The data below summarize the department's operations in January.

Units

Percent Complete with Respect to Conversion

Beginning work in processinventory...................................

7,100

70%

Transferred in from the preceding department duringJanuary................................................................................

61,000

Ending work in processinventory.........................................

4,600

30%

The Painting Department's cost per equivalent unit for conversion cost for January was Rs. 8.24.

How much conversion cost was assigned to the units transferred out of the Painting Department during January

5

BC Corporation reported the following data for the month of January:

Inventories:

Beginning

Ending

Raw materials

46,000

34,000

Work in process

31,000

29,000

Finished goods

27,000

55,000

Additional information:

Raw materials purchases

79,000

Direct labor cost

93,000

Manufacturing overhead cost incurred

54,000

Indirect materials included in manufacturing overhead cost incurred

8,000

Manufacturing overhead cost applied to Work in Process

57,000

Calculate Gross Profit if, mark up is 30%.

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