Muhammad Zubair

Assignment No.1

Mgt402

Solution:

1. Prepare Material Ledger Card by using FIFO method

Received Issue Balance

Date Unit Unit Unit
Unit Cost Amount Unit Cost Amount Unit Cost Amount

01-Sep-17 - - 100 10 1,000

200 9 1,800 100 10 1,000

01-Sep-17
200 9 1,800

100 10 1,000
08-Sep-17
100 9 900 100 9 900

400 11 4,400 100 9 900

12-Sep-17
400 11 4,400

600 12 7,200 100 9 900

20-Sep-17
400 11 4,400

600 12 7,200

100 9 900
30-Sep-17
400 11 4,400 600 12 7,200

Total 13,400 7,200 7,200

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Muhammad Zubair

2. Calculate total cost of material issued

Cost of Material Issue =7200

3. Calculate value of ending inventory

Value of Ending Inventory =7200

4. Calculate value of ending finished goods and costs of sales

Opening Inventory =1000

Direct Mat Purchases =13400

Total = 14400

Less Ending Inventory = (7200)

Add Direct Labor = 2500

Add Direct FOH = 1500

Cost of Goods Sold =11200

Cost of Goods Manufactured

Unit Manufactured

11200/900=12.44 per Unit

=900-500=400

Ending Finishing Goods

Per Unit Manufactured * Ending Finishing Goods

=12.44*400=4976

Note: If you found any mistake then Correct ur self I m not Responsible in case of zero
marks

Thanks and Regard

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