Raw material(1-1-03)Rs.12,500 Raw material(31-12-03)Rs.32,000

Work-in-Process(1-1-03)6,300 Work-in-Process(31-12-03)16,500

Finished Goods (1-1-03)12,500 Finished Goods(31-12-03)25,000

Sales678,600

Sales return15,000

Purchases of raw material245,000

Administrative expense70,000

Marketing expense55,000

Indirect material8,000

Indirect labor4,500

Direct labor125,000

Other factory overhead17,600

Repair and maintenance10,000

Insurance-factory12,000

Depreciation-factory22,000

Required:

i) Statement of cost of goods manufactured

ii) Income Statement

2)

The ASF Corporation manufactures one product and accounts for costs by a job orders cost system You have obtained the following information for the year ended December 31 2010 from the Corporations books and records

Total manufacturing cost added during 2010 was 1,000,000

Cost of goods manufactured was 970,000

Factory overhead was applied to work in process inventory at 75% of direct labor (applied factory overhead for the year 27% of the total manufacturing cost)

Beginning work in process inventory January 1 was 80% of ending work-in - process inventory December 31

Required

i)Prepare formal statement of cost good manufactured

ii) Prepare journal entries reflecting the above transactions

Answer rating: 100% (QA)

1 Statement of Cost of Goods Manufactured Direct Materials Raw material 1103 12500 Add Purchases of ... View the full answer