Initial Allocation

Work-in-Process Finished Goods

Opening Balance Opening Balance 125,000
Material 22,800 WIP 120,000
Labour 18,800
O/H 13,400 55,000
Material 50,000
Labour 40,000
O/H 25,000 115,000

170,000 245,000
Finished Goods 120,000 COGS 200,000
Closing Balance 50,000 Closing Balance 45,000

Cost of Goods Sold

Finished Goods 200,000

O/H Control 5,000

WIP Transfers
Opn Bal 55,000
Incremental 65,000
Distribution of Trf from FG to COGS & Cls Bal
Cls Bal 45,000
COGS 75,000
120,000

Forecasted O/H 25,000

Forcasted output 125 units
Budgettted O/H rate 200 Rs/unit
Actual output 125

Actual O/H 30,000 25000

O/H absorbed 25,000

O/H Control
Incurred 30,000
Absorbed / applied 25,000
UNDER absorbtion 5,000
Adjustment 1 - (reworking -Weighted Average)
Work-in-Process Finished Goods
Opening Balance Opening Balance 125,000 Current
Material 22,800 WIP 123,529 Total WIP
Labour 18,800 Trf to FG
O/H 13,400 Ratio
Material 50,000 New Total WIP
Labour 40,000 New Trf to FG
O/H 30,000
FG
175,000 248,529 COGS
Finished Goods 123,529 COGS 202,881 New trf to COGS
Closing Balance 51,471 Closing Balance 45,648

Cost of Goods Sold

Finished Goods 202,881
1,471
648
2,881

5,000
 170,000
120,000
0.7058823529
175,000
123,529

245,000
200,000 0.8163265
202,881
Adjustment 2 - (prorata adjustment)
Work-in-Process Finished Goods
Opening Balance Opening Balance 125,000
Material 22,800 WIP 120,000
Labour 18,800 O/H Control 763
O/H 13,400
Material 50,000
Labour 40,000
O/H Applied 25,000 Cls WIP
O/H Control 847 Cls FG
170,847 245,763 COGS (P&L)
Finished Goods 120,000 COGS 200,000
Closing Balance 50,847 Closing Balance 45,763

Cost of Goods Sold Closing Balances (before adjustme

Finished Goods 200,000 WIP
O/H Control 3,390 FG
COGS
Adjustment 3 - (Write off to COGS)
COGS
Addl charge required 5,000
 Pro-rata

50,000 16.95% 847

45,000 15.25% 763
200,000 67.80% 3390
295,000 100.00% 5,000

ng Balances (before adjustment)

50,000 16.95% 847
45,000 15.25% 763
200,000 67.80% 3,390

295,000 5,000

5,000
Summary Status
Wt.Avg. COGS Prorata
WIP 51,471 50,000 50,847
F/G 45,648 45,000 45,763
COGS 202,881 205,000 203,390

300,000 300,000 300,000

Incremental
Wt.Avg. COGS Prorata
WIP 1,471 0 847
F/G 648 0 763
COGS 2,881 5,000 3,390

5,000 5,000 5,000