MGT 402 ASSIGNMENT IDEA SOLUTION

Question 1 Answer
Total Factory Cost
Add/Less Particulars
Amount
Openin g Raw Material 19000
Add Purchases 75000

Material Available for Use 94000
Less Closing Raw Material 21000

Material Consumed 73000
Add Direct Labour 31000
Prime Cost 104000

Add FOH 43400
Total Factory Cost 147400

Question 2 Answer
Closing inventory of finished goods
No of Units Manufactures= Units Sold + Closing Finshed Units – Opeing Finshed Units
No of Units Manufactures= 26300 + 3700 – 4400
No of Units Manufactures=25600 units

Per unit Cost of Goods Manufactured = Cost of Goods Manufactured / No of Units
Manufactures
Per unit Cost of Goods Manufactured =148500/25600
Per unit Cost of Goods Manufactured =5.8
Closing Finished Goods Inventory= Closing Finished Units * Cost per unit
Closing Finished Goods Inventory=3700*5.8

Closing Finished Goods Inventory=21463

Question 3 Answer:
Azhar Corporations
Cost of Goods Sold Statement
Ast on 31, 10 2010

Add/Less Particulars Amount
opening raw material 19000
Add Purchases 75000
Material Available for Use 94000
Less Closing Raw Material 21000
Material Consumed 73000
Add Direct Labour 31000
Prime Cost 104000
Add FOH 43400
Total Factory Cost 147400
Add WIP opening 21000
Cost of Goods Available for Manufacturing 168400
Less Closing WIP 19900
Cost of Goods Manufactured 148500
Add Opening Finished Goods 13100
Cost of Goods Available for sale 161600
Less Closing Finished Goods 21463
Cost of Goods Sold 140137



Question no 4 Answer
Gross Profit & Net Profit
Azhar Corporation
Income Statement
As on xx/xx/xxxx
Particulars

sales 184100
Less Cost of Goods Sold 140137
Gross Profit 43963
Less Opearating Expenses 23450
Net Profit 20513