In: Accounting
Mohkam’s incurred the following costs during 2019.
Direct material used .......................................................................................... Rs.87,000,000
Direct labor ....................................................................................................... 162,000,000
Manufacturing overhead applied ........................................................................ 90,000,000
During 20x2, products costing $600,000 were finished, and products costing $66,000,000 were sold on
account for $97,500,000. There were no purchases of raw material during the year. The beginning balances
in the firm’s inventory accounts are as follows:
Raw material .................................................................................................... $113,500,000
Work in process ................................................................................................ 9,000,000
Finished goods ................................................................................................. 15,000,000
Required:
1. Prepare T-accounts to show the flow of costs through the company’s manufacturing accounts during
2019.
2. Prepare a partial balance sheet and a partial
income statement to reflect the information given