Assignment 01 MGT402

SEMESTER SPRING 2018

COST & MANAGEMENT ACCOUNTING (MGT402)

ASSIGNMENT NO. 01

DUE DATE: 17TH MAY, 2018

MARKS: 10

Assignment Topic: Cost of Goods Sold Statement

Assignment Objective:
After attempting this assignment whole-heartedly, the students will be able to:
 Get understanding about Cost of Goods Sold Statement
 Get idea about the impact of under/over applied FOH on Cost of Goods Sold
Assignment 01 MGT402

Assignment 01 10 Marks
Ray Corp. provides the following data for the year 20X7:

Direct Labor Cost Rs. 130, 000

Indirect Labor Cost 60,000
Indirect Material Cost 13,400
Freight-in 6,000
Miscellaneous Factory Overhead Costs 5,000
Purchases 210, 000

Factory overhead is applied at the rate of 75% of direct labor cost. 3,900 units were sold during
20X7 at Rs. 200 per unit. Inventory accounts showed following opening and closing balances:

Jan. 1 Dec. 31
Raw Materials Rs. 27,000 Rs. 17,000
Work in Process 29,500 13,000
Finished Goods 25,000 ?
Finished Goods (units) 200 300

Required:
Using the above data, determine following for the year 20X7:
1. Number of units manufactured (1 Point)
2. Unit cost of finished goods (1 Point)
3. Value of finished goods (2 Points)
4. Cost of goods sold statement at normal and at actual (5 Points)
5. Gross profit (1 Point)

Note: Please follow proper format and provide complete working and formulas where
necessary
Assignment 01 MGT402

IMPORTANT NOTE:

24 hours extra / grace period after the due date is usually available to overcome uploading
difficulties. This extra time should only be used to meet the emergencies and above mentioned
due dates should always be treated as final to avoid any inconvenience.

IMPORTANT INSTRUCTIONS/ SOLUTION GUIDELINES/ SPECIAL

INSTRUCTIONS

DEADLINE:

 Make sure to upload the solution file before the due date on VULMS
 Any submission made via email after the due date will not be accepted

FORMATTING GUIDELINES:

 Use the font style “Times New Roman” or “Arial” and font size “12”
 It is advised to compose your document in MS-Word format
 You may also compose your assignment in Open Office format
 Use black and blue font colors only

RULES FOR MARKING

Please note that your assignment will not be graded or graded as Zero (0), if:

 It is submitted after the due date.

 The file you uploaded does not open or is corrupt.
 It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF etc.
 Not submitted as per given format
 It is cheated or copied from other students, internet, books, journals etc.

Note Related to Load Shedding: Please Be Proactive

Dear Students,

As you know that semester activities have started and load shedding problem is also prevailing in
our country. Keeping in view the fact, you all are advised to post your activities as early as
possible without waiting for the due date. For your convenience; activity schedule has already
been uploaded on VULMS for the current semester, therefore no excuse will be entertained after
due date of assignments or GDBs.