Cost Assignment Solution Require 28-oct last day

[Amir ..]

“Cost & Management Accounting (MGT402)”

“Cost of Goods Sold”
Izhar Corporation is a manufacturing company which deals in furniture
manufacturing. They use job order costing system for costing the goods. The
company is a market leader and having good repute in the market. Its labor turnover
is very low because its employees and workers are quite happy and satisfied by
working for the company. During December 2010, company acquired new raw
material worth Rs. 75,000/- whereas the labor cost incurred by the department was
Rs. 31,000/- (at Rs. 2.50 per unit cost). Factory overheads (FOH) applied by the
department at the rate of Rs. 3.5 per unit. The company sold 26,300 units at the rate
of Rs. 7 per unit during the period.

Additional information
31-12- 2010, 01-12-2010
Rs. Rs.
Raw Material 21,000, 19,000
Labor still-in-process 6,000, 6,600
Material still-in-process 6,800, 6,900
FOH still-in-process 7,100, 7,500
Goods in store room (Cost) ? , 13,100
Goods in store room (units) 3,700, 4,400
Misc. Operating Expenses ---, 23,450

Requirement:
• Calculate Total Factory cost (4 marks)
• Calculate Closing inventory of finished goods. (3 marks)
• Calculate Cost of goods Sold. (4 marks)
• Calculate Gross Profit & Net Profit. (4 marks)

[abdulsaboor]