Welcome to Semester spring 2017
Cost & Management Accounting (MGT402)
On behalf of Virtual University of Pakistan, we warmly welcome to all of you enrolled in the course “Cost & Management Accounting (MGT402)”. We hope that you will enjoy learning new concepts of Cost & Management Accounting and find it useful to implement its knowledge in your practical life.
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SEMESTER SPRING 2012 Cost & Management Accounting (MGT-402)
Assignment No. 02 Due Date: 4th June 2012 -- 7th June 2012 Marks: 30
Topic:Process Cost Accounting - FIFO Costing Method
Case Solution: 1. Equivalent production units:
Units Units Material Labor and FOH
Units completed 220,000 220,000 (-) beginning inventory (total units) 20,000 20,000 Units started & completed this period 200,000 200,000 (+) beginning inventory units - 0 - 12,000 (60%) (+) ending inventory units 30,000 10,000 (33-1/3%) Equivalent production units 230,000 222,000
2. Unit cost: Calculation Of Per Unit Cost
= Total Cost / Equivalent Units Produced Rs. Rs. Direct Material Cost (W-1) 496,000 / 230,000 = 2.15652 Direct Labor 1,198,800 / 222,000 = 5.4 Factory Overhead Cost 421,800 / 222,000 = 1.9 9.45652 / unit
3. Cost of Units transferred to Finish goods inventory Rs. Rs.
From Opening WIP Inventory Cost already incurred for Opening Work in process: 100% Material & 40% Conv. Cost 84,000 Cost incurred in the current period to complete WIP
Direct Labor 20,000 * 60%) * 5.4 64,800 FOH Cost (20,000 * 60%) * 1.9 22,800 171,600
From Current period Production Cost of Finished goods completed & transferred from the current production (200,000 * 9.45652) 1,891,304