Assignment Solution

MGT402
Answer-1:
Material ledger card of Leather Bag Manufacturing Company for the month of April,
20X9 shows the following transactions on:

DATA:

April 01: Company had 1,300 kg material @ Rs. 10/ kg.

April 04: Purchased material of 1,800 kg @ Rs. 11/ kg.
April 13: Issued 2,200 kg material
April 19: Purchased material of 1,700 kg @ Rs. 12/ kg
April 29: Issued 900 kg material

Material Ledger Card

Date Received Issued Balance
Unit Cost Amount Unit Cost Amount Unit Cost Amount
April- 1300 10 13000
1
April- 1800 11 19800 3100 10.58 32798
4
April- 2200 10.58 23276 900 10.58 9522
13
April- 1700 12 20400 2600 11.50 29900
19
April- 900 11.50 10350 1700 11.50 19550
29

Answer-2:

Goods Sold Statement At normal

Opening Raw Material 13000
Add Purchases 35000
Material available for use: 48000
Less Closing Raw Material Less Closing Raw Material 19550
Total Material used: 67550
Add Direct Labor 20000
Prime Cost: 87550
Add Applied FOH (600*50) 30000
Total Factory Cost: 117550
Add Opening W.I.P 00,000
Less Opening W.I.P 12000
Cost of Goods Manufactured: 105550
Add Opening W.I.P 00,000
Less Opening W.I.P 13000
Cost of Goods Manufactured: 92550

FOH at Normal
Labor Hour 600 hrs

FOH Rate 30 Rate

Total FOH 30,000

FOH at Actual
Applied FOH 30000

Actual FOH -50000

Difference FOH -20,000

Note: we add 20,000 in cost of goods manufactured than we get the Actual cost of Goods
sold statement,

Goods Sold Statement At Actual

Opening Raw Material 13000
Add Purchases 35000
Material available for use: 48000
Less Closing Raw Material Less Closing Raw Material 19550
Total Material used: 67550
Add Direct Labor 20000
Prime Cost: 87550
Add Applied FOH (600*50) 30000
Total Factory Cost: 117550
Add Opening W.I.P 00,000
Less Opening W.I.P 12000
Cost of Goods Manufactured: 105550
Add Opening W.I.P 00,000
Less Opening W.I.P 13000
Cost of Goods Manufactured: 92550
Add Difference FOH 20000
Cost of Goods Sold: 112,550