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    mc180202711 Assignment Sol. MGT402

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    Fari Bani
    The material ledger card shows the company had 1,300kg of material on April 1st at Rs. 10/kg. Throughout the month, additional material was purchased and issued. On April 29th, the remaining balance was 1,700kg at Rs. 11.50/kg. Two goods sold statements are presented: one at normal factory overhead and one at actual. The normal statement applies a factory overhead rate of Rs. 30/labor hour. The actual statement adjusts costs by Rs. 20,000 to match actual overhead of Rs. 50,000.

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    mc180202711 Assignment Sol. MGT402

    Uploaded by

    Fari Bani
    36 views3 pages
    The material ledger card shows the company had 1,300kg of material on April 1st at Rs. 10/kg. Throughout the month, additional material was purchased and issued. On April 29th, the remaining balance was 1,700kg at Rs. 11.50/kg. Two goods sold statements are presented: one at normal factory overhead and one at actual. The normal statement applies a factory overhead rate of Rs. 30/labor hour. The actual statement adjusts costs by Rs. 20,000 to match actual overhead of Rs. 50,000.

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    The material ledger card shows the company had 1,300kg of material on April 1st at Rs. 10/kg. Throughout the month, additional material was purchased and issued. On April 29th, the remaining balance was 1,700kg at Rs. 11.50/kg. Two goods sold statements are presented: one at normal factory overhead and one at actual. The normal statement applies a factory overhead rate of Rs. 30/labor hour. The actual statement adjusts costs by Rs. 20,000 to match actual overhead of Rs. 50,000.

    Copyright:

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

    mc180202711 Assignment Sol. MGT402

    Uploaded by

    Fari Bani
    The material ledger card shows the company had 1,300kg of material on April 1st at Rs. 10/kg. Throughout the month, additional material was purchased and issued. On April 29th, the remaining balance was 1,700kg at Rs. 11.50/kg. Two goods sold statements are presented: one at normal factory overhead and one at actual. The normal statement applies a factory overhead rate of Rs. 30/labor hour. The actual statement adjusts costs by Rs. 20,000 to match actual overhead of Rs. 50,000.

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    Assignment Solution

    MGT402
    Answer-1:
    Material ledger card of Leather Bag Manufacturing Company for the month of April,
    20X9 shows the following transactions on:

    DATA:

    April 01: Company had 1,300 kg material @ Rs. 10/ kg.


    April 04: Purchased material of 1,800 kg @ Rs. 11/ kg.
    April 13: Issued 2,200 kg material
    April 19: Purchased material of 1,700 kg @ Rs. 12/ kg
    April 29: Issued 900 kg material

    Material Ledger Card


    Date Received Issued Balance
    Unit Cost Amount Unit Cost Amount Unit Cost Amount
    April- 1300 10 13000
    1
    April- 1800 11 19800 3100 10.58 32798
    4
    April- 2200 10.58 23276 900 10.58 9522
    13
    April- 1700 12 20400 2600 11.50 29900
    19
    April- 900 11.50 10350 1700 11.50 19550
    29

    Answer-2:

    Goods Sold Statement At normal


    Opening Raw Material 13000
    Add Purchases 35000
    Material available for use: 48000
    Less Closing Raw Material Less Closing Raw Material 19550
    Total Material used: 67550
    Add Direct Labor 20000
    Prime Cost: 87550
    Add Applied FOH (600*50) 30000
    Total Factory Cost: 117550
    Add Opening W.I.P 00,000
    Less Opening W.I.P 12000
    Cost of Goods Manufactured: 105550
    Add Opening W.I.P 00,000
    Less Opening W.I.P 13000
    Cost of Goods Manufactured: 92550

    FOH at Normal
    Labor Hour 600 hrs

    FOH Rate 30 Rate

    Total FOH 30,000

    FOH at Actual
    Applied FOH 30000

    Actual FOH -50000

    Difference FOH -20,000

    Note: we add 20,000 in cost of goods manufactured than we get the Actual cost of Goods
    sold statement,

    Goods Sold Statement At Actual


    Opening Raw Material 13000
    Add Purchases 35000
    Material available for use: 48000
    Less Closing Raw Material Less Closing Raw Material 19550
    Total Material used: 67550
    Add Direct Labor 20000
    Prime Cost: 87550
    Add Applied FOH (600*50) 30000
    Total Factory Cost: 117550
    Add Opening W.I.P 00,000
    Less Opening W.I.P 12000
    Cost of Goods Manufactured: 105550
    Add Opening W.I.P 00,000
    Less Opening W.I.P 13000
    Cost of Goods Manufactured: 92550
    Add Difference FOH 20000
    Cost of Goods Sold: 112,550

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