Q-1

The cost department of the Bravo Corporation prepared the following data and cost for the year 2008

Inventories
Finished Goods Work in process Raw material

1-Jan 48,600 81,500 34,200

31-Dec
? 43,250 49,300

Other Information Dep. On Factory Equip. interest Earned Raw Material purchased D.L Cost indirect labour Cost Freight in Miscellaneous FOH Purchase Discount

21,350 63,000 364,000 162,500 83,400 4,600 47,900 5,200 1300 units 420 Units 3880 Units @ 200 per unit.

F.G inventory on jan-1 F.G inventory on Dec-31 Sales REQ:

a) The unit Cost of F.G Inventory on Dec.31. b) The Total Cost of F.G Inventory on Dec.31. c) The COGS d) The Gross Profit And Gross Profit per unit.

Q-2 The following Trail balance has been Extracted From the books of MST Co. on June 30 2007 cash Account receivable Notes Receivable Material Work in process Finished Goods Prepaid Insurance Machinery & Equipment Material purchased D.L Cost FOH Cost Selling Cost Administrative Cost Further information
Inventories on June 30, 2007 Material Work in Process Finished Goods

28,200 41,000 23,000 31,800 4,000 11,700 200 93,500 16,520 16,000 17,480 1,200 1,020 285,620

Notes Payable Accounts payable Taxes payable Rent Payable Sales Capital Stock Retained Earning Accumulated Dep.

3,200 12,350 2,000 1,020 100,000 100,000 47,050 20,000

285,620

3,520 2,500 10,000

There Was a Debit balance of Rs. 1480 representation the difference between Actual FOH cost of Rs. 17,480. and the FOH cost Applied to production at the rate of 100% of Direct labour cost of Rs. 16,000. The variance was analyzed and it was found to be due to an incorrect Overhead Applied Rate. The variance I to be charged to the entire production for the period. REQ:

a) Statement of COGS on June 30, 2007 at normal and at Actual. b) Income Statement. c) Balance Sheet on June 30, 2007.

Q-3 From the following information extracted from the records of M/S Nisar corporation for the year Ending Dec.31.2005, Calculate: 1) PRIME COST 2) CONVERSION COST AT NORMAL 3) COST OF GOODS SOLD AT NORMAL & ACTUAL 4) GROSS PROFIT RATE ON SALE 5) GROSS PROFIT RATE ON COST

INOFRMAT ION GIVEN Direct material "A" Inventory on 1-1-2005 Purchases during the year Inventory on 31-12-2005
Direct material "B" Inventory on 1-1-2005 Purchases during the year Inventory on 31-12-2005

15,000 80,000 7,000

3,000 67,000 8,000

Direct labour Cost FOH cost (Applied 100 % of D.L Cost) FOH at Actual Increase in W.I.P inventory during the year Decrease in F.G inventory during the year Sales

70,000 80,000 40,000 30,000 400,000

Q-4
The Record of Bel Cold Refrigerator Shows the following information for three months ended March 2009

Material purchased

1,946,700

Inventories
Material F.G (100 Refrigerator) D.L Cost FOH 268,000 43,000 2,125,800 764,000

Marketing Expenses General & Admin Exp. Sales (12,400 Refrigerator) Inventories March 31 Material
Finished Goods (200 Refrigerator)

516,000 461,000 6,634,000

167,000 ?

REQ:
a) The Income Statement. b) the Number of Units Manufactured. c) The net Income For Units Sold. d) The Gross profit For Units Sold.

Q-6

The Amin industries submits the following information on June 30, 2011 sales for the year
R.M Inv. July 1, 2010 F.G inv. July 1, 2010

250,000
13,000 58,000

purchases purchase return

direct labour power heat & Light

102,000 2,000
39,000 2,000

Indirect material Consumed Depreciation Plant

tool expense indirect labour

4,000 9,500
3,000 1,000

Fire insurance Miscellaneous Manufacturing costs

work in process 1-Jul-10

250 500
12,000

30-Jun-11 Raw material 30, June 2011

F.G inv. 30 June 2011

16,000 19,000
56,500

other expenses for the year selling Expenses General Expenses REQ: 15% of sales 5 % of sales

Prepare income Statement