Agha Steel incurred the following expenditure during the year. 1. steel purchased and issued to production Rs200,000. 2. issued oil, bolts, nu and screws to production Rs15,000. 3. Paid electricity and maintenance of the factory Rs13,000. 4. Salaries paid to 3 welders of the factory Rs30,000 each. 5. Wages paid to cleaners and helpers Rs. 8,000. 6. Depreciation on rolling machine to be charged Rs12,000 7. Other factory over heads were Rs44,000. 8. Administrative expenses are the period were Rs38,000. 9. Selling and Distribution expenses were Rs40,000. REQUIRED: a) Identify Direct Material, Direct Labour and FOH. b) Pass the necessary entries. c) Calculate following i) Prime cost ii) Manufacturing Cost iii) Conversion Cost iv) Production Cost v) Total cost
Agha Steel incurred the following expenditure during the year.
1. steel purchased and issued to production Rs200,000.
2. issued oil, bolts, nu and screws to production Rs15,000.
3. Paid electricity and maintenance of the factory Rs13,000.
4. Salaries paid to 3 welders of the factory Rs30,000 each.
5. Wages paid to cleaners and helpers Rs. 8,000.
6.
7. Other factory over heads were Rs44,000.
8. Administrative expenses are the period were Rs38,000.
9. Selling and Distribution expenses were Rs40,000.
REQUIRED:
a) Identify Direct Material, Direct Labour and FOH.
b) Pass the necessary entries.
c) Calculate following
i) Prime cost
ii)
iii) Conversion Cost
iv) Production Cost
v) Total cost
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