Problem 2-27:
Cost of Goods Sold Statement
Beginning raw material + Purchase of Raw materials Raw material available for use _ Ending Raw material
Raw material used in production (DM)
+Direct Labour Prime cost
+ Manufacturing Overhead Insurance Factory Equipment Rent factory building
Utilities factory
Cleaning supplies factory Depreciation factory Equipment Maintenance factory
Manufacturing cost
+ Beginning WIP _ Ending WIP
Cost of Goods Manufactured + Beginning finished good Cost of goods available for Sale _ Ending Finished goods Cost of goods Sold
8000 90000 52000 6000 110000 74000
50000 260000 310000 40000 270000
?65000
?335000
340000
675000(DM+ DL+
MOH)
?48000 33000
?690000 30000 720000
?85000 635000
690000+33000=723000 -675000=48000 675000_33000= 642000-690000=48000
Req:2
Total cost of Direct Material 270000 No of unit produced 30000 So cost per unit : Total cost/total unit =270000/30000 =9 Tk
Total cost of Rent on Factory Building 90000 No of unit produced 30000
So cost per unit : Total cost/total unit =90000/30000
=3 Tk Req 3:
VC:
Per unit cost of Direct Material Tk 9 No of unit produced 50000
So Total cost of 50000 units 50000*9=450000 Tk FC:
Total cost of Rent on Factory Building 90000 No of unit produced 50000
So cost per unit : Total cost/total unit =90000/50000
= 1.8 Tk
2-29:
Cost of Goods sold Statement
Beginning Raw material + Purchase of raw material Raw material available for use _ Ending raw material
Raw material used in production +Direct Labour
Prime cost
20000 160000 180000 10000
170000 80000 250000
Manufacturing Overhead:
Indirect labour Building rent Utilities Factory Royalty
Maintenance factory
Rent for special production equipment Other factory overhead cost
Total manufacturing cost + BEG WIP
_ Ending WIP
Cost of Goods Manufactured + BEG FG
Cost of Goods available for sale _ Ending FG
Cost of goods sold
60000 40000 35000 30000 25000
9000 (6000+ 30000*.1) 11000
210000 460000 30000 40000 450000 0 450000
?60000
?390000
Req 2:
a) Ending finished goods= Production unit- Selling unit = 30000- (650000/25)
= 30000- 26000 = 4000 units
b) Cost per unit= Cost of unit produced/No of unit produced =450000/30000
=15 Tk
Amount of ending finished goods=4000*15=60000 Tk
Req3: Income Statement
Particular Tk Tk
Sales
_Cost of goods sold Gross profit
_Operating Exp/Selling and administrative exp
650000 390000 260000
Advertising exp Building rent20%
Selling and administrative salaries
Other selling and administrative expense Net income
50000 10000 140000 20000
220000 40000
