COST ACCOUNTING

Attempt All Questions: Question # 1 You are required followings: Prime cost Conversion cost at normal & at actual CGS at normal & actual GP rate on cost GP rate on sale INFRMATION: Direct Material A
Inventory on 1-1-2007 Puchase during the year Inventory on 31-12-2007 20000 100000 10000

Direct material B
Inventory on 1-1-2007 Puchase during the year Inventory on 31-12-2007 5000 70000 9000

Direct Labour75000 FOH (applied) at 100% of D.L. FOH (actual)..95000 Icrease W-I-P during the year. 35000 Decrease W-I-P during the year 45000 Sales..540000

Question # 2 Natures way produces natural cosmetics. The firms transaction for the july follow: Purchased raw material $25600 Issued raw material to production as follows; Direct material..$25600 o Indirect matrial.$4500 Record FOH during the month is totaling $29600. Pay roll deductions are as follows; Provident fund$1866 Income tax.$436 Benevolent fund..$6020 Allocated factory pay roll as follows; Direct labor..$24700 Indirect labour..$6200

Employer also contribute to provident fund in equal amount. Paid misc. FOH cost .$3920 Depreciation during month; Factory$3800 Building.$1290 Expired factory insurance..$412 Factory utilities during month$1250 Property tax on factory building..$875 Applied overhead to production at 90% of direct labor cost Cost of job completed during the period.$48900 Sales; Having cost=56700 Revenue=82500

Record these transaction in genersl journal form. Question # 3 During march, the assembly deptt. Received 60000 units from the cutting Deptt. At a unit cost of 3.54. cost added in assembly Deptt. Were; Material ..$ 41650 Labor .$101700 FOH.$56500 There was no begning inventory. Of the 60000 units received, 50000 were transferred out and 9000 units were process at the end of month (all material 2/3 converted); 1000 lost units were complete as to material and conversion cost. The entire loss considered abnormal and is to be charged to FOH. REQUIRED: Cost of production Report.

Question # 4 Annual estimated factory overhead of a company for an expacted voume of 180000pounds of a product was as follows:Fixed FOH..$36000 Variable FOH$108000 Outputs was 10000 pounds in june and actual overhead expense was $7700. REQUIRED: i. The over head applied rate per unit ii. Budgeted varrince iii. Volume varrience