Q.1. Mansoor Industries Limited uses a process cost system of three processes, the following data relates to
Question:
Q.1. Mansoor Industries Limited uses a process cost system of three processes, the following data relates to its process-01.
Beginning Inventory ……………………………… Rs. 1,60,000
Raw Material Uses ……………………………….. Rs. 2,50,000
Direct Labour Cost Used ………………………… Rs. 3,68,000
Factory Overhead Cost Applied ………………… Rs. 2,76,000
The data extracted from a quantity schedule relating to the above processes are as follows:
Units in Process Beginning ……………………………… 1,30,000 (100% completed as to Material 70% as conversion cost).
Units placed in production ………………………………. 4,75,000
Units Completed ………………………………………….. 4,00,000 Units still in process at the end at the end 90% complete as to Material and 50% complete as to conversion cost. Required: Compute the Equivalent Production units, the unit cost, the total cost of unit completed and the total cost of units in process at end.
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott