Blog: Mgt402 Assignment No. 1 Fall 2011 Solution

Izhar Corporation is a manufacturing company which deals in furniture manufacturing. They use job order costing system for costing the goods. The company is a market leader and having good repute in the market. Its labor turnover is very low because its employees and workers are quite happy and satisfied by working for the company. During December 2010, company acquired new raw material worth Rs. 75,000/- whereas the labor cost incurred by the department was Rs. 31,000/- (at Rs. 2.50 per unit cost). Factory overheads (FOH) applied by the department at the rate of Rs. 3.5 per unit. The company sold 26,300 units at the rate of Rs. 7 per unit during the period.

Additional information

31-12- 2010 01-12-2010

Raw Material 21,000 19,000

Labor still-in-process 6,000 6,600

Material still-in-process 6,800 6,900

FOH still-in-process 7,100 7 ,500

Goods in store room (Cost) ? 13,100

Goods in store room (units) 3,700 4,400

Misc. Operating Expenses --- 23,450

Virtual University of Pakistan (Fall semester 2011) MGT-402

Requirement:

• Calculate Total Factory cost (4 marks)

• Calculate Closing inventory of finished goods. (3 marks)

• Calculate Cost of goods Sold. (4 marks)

• Calculate Gross Profit & Net Profit. (4 marks)


SOLUTION:


Download the complete solution in MS word file format: click the link: mgt402 assignment solution
NOTE: if u dont have, then u may use our username & password to download:
user name: vusolutions1
password: mba123