4. A manufacturing organization had 6000 Kg. of direct material with total cost of Rs. 600,000 as at April 1, 2019. During the month two times direct material was purchased. On Aprol 5, 2019 10,000 Kg. of direct material was purchased @ Rs. 104.8 per Kg. and on April 20, 2019 12000 Kg. of direct material was purchased at a total cost of Rs. 1320,000. During the month 25000 Kg. of direct material was used in production (Assume only one type of material is used in production) and direct labour cost of Rs. 1250,000 and factory overhead cost of Rs. 1100,000 was incurred. On April 1, 2019 cost of work in process inventory was Rs. 500,000 and on April 30, 2019 cost of work in process inventory was Rs. 400,000. Required: Calculate cost of direct material used during April 2019, cost of direct material inventory as at April 30, 2019, cost of goods manufactured during April 2019 assuming periodic inventory system under each of the following methods separately: a. First in first out b.Weighted average
4. A manufacturing organization had 6000 Kg. of direct material with total cost of Rs. 600,000 as at April 1, 2019. During the month two times direct material was purchased. On Aprol 5, 2019 10,000 Kg. of direct material was purchased @ Rs. 104.8 per Kg. and on April 20, 2019 12000 Kg. of direct material was purchased at a total cost of Rs. 1320,000. During the month 25000 Kg. of direct material was used in production (Assume only one type of material is used in production) and direct labour cost of Rs. 1250,000 and factory overhead cost of Rs. 1100,000 was incurred. On April 1, 2019 cost of work in process inventory was Rs. 500,000 and on April 30, 2019 cost of work in process inventory was Rs. 400,000. Required: Calculate cost of direct material used during April 2019, cost of direct material inventory as at April 30, 2019, cost of goods manufactured during April 2019 assuming periodic inventory system under each of the following methods separately: a. First in first out b.Weighted average
Chapter1: Financial Statements And Business Decisions
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Depreciation Accounting
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4. A manufacturing organization had 6000 Kg. of direct material with total cost of Rs. 600,000 as at April 1, 2019. During the month two times direct material was purchased. On Aprol 5, 2019 10,000 Kg. of direct material was purchased @ Rs. 104.8 per Kg. and on April 20, 2019 12000 Kg. of direct material was purchased at a total cost of Rs. 1320,000. During the month 25000 Kg. of direct material was used in production (Assume only one type of material is used in production) and direct labour cost of Rs. 1250,000 and factory overhead cost of Rs. 1100,000 was incurred. On April 1, 2019 cost of work in process inventory was Rs. 500,000 and on April 30, 2019 cost of work in process inventory was Rs. 400,000.
Required:
Calculate cost of direct material used during April 2019, cost of direct material inventory as at April 30, 2019, cost of goods manufactured during April 2019 assuming periodic inventory system under each of the following methods separately:
a. First in first out
b.Weighted average
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