Question

In: Accounting

The Zee manufacturing company produces a single product which goes through one process only. The manufacturing...

The Zee manufacturing company produces a single product which goes through one process only. The manufacturing cycle takes a month. The company started its manufacturing operation on 1st February, 2018 and costs of production for this month were as follows:

Material Rs. 41,412
Labor Rs. 32,054
FOH Rs. 23,870

The production statistics for the month were as follow:

Units completed and transfer to finished goods store Rs. 6,500

Unit in Process on February 31, 2018 was 1,600 (Material 40%, Labor and FOH 20 per cent)

FIND THE FOLLOWING:
1. How much was the total costs charged to the department?
2. What is the Equivalent Units Produced for the Materials?
3. What is the EUP for the Conversion Costs?
4. How much is the total unit cost?
5. How much is the cost of goods accounted for?

Solutions

Expert Solution

1.Total Cost Rs.97,336 charged to department.   

2. Equivalent units produced for the materials i s 7140 units

3. Equivalent units for the conversion cost is 6820 Units each for Labour and FOH.

4. Total unit Cost is Rs.14 per unit.

5. Rs.91,000 (6500×Rs.14) cost of goods is accounted for as finished goods and Rs.6336 is accounted for as the vlaue of Ending work -in- process.

For all of the above answer please refer the below attached images.

ekkarill92 answered 1 year ago
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