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)
Idea Solution will be upload soon
