he following balances have been taken from the general ledger for Pak Fan Manufacturing Company: Raw Materials Inventory (1-12-2014)Rs. 40,000Raw Material Purchases190,000Raw Materials Returns9,000Carriage Inwards15,000Direct Labor255,000Indirect Labor60,000Depreciation (Machinery)30,000Hear, Light and Power25,000Factory Rent and Taxes31,000Factory Repairs Expense19,000Foreman ‘s Salary25,000Raw Material (31-12-2014)58,000Work in Process (1-12-201463,000 The foreman estimates that Rs. 32,000 of Raw Materials and Rs. 25,000 of Direct Labor are to be allocated to the unfinished goods in process on 31-12-2014. Compute the cost of December 31, 2014 inventory of Goods in Process.

Name: he following balances have been taken from the general ledger for Pak
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Description: he following balances have been taken from the general ledger for Pak Fan Manufacturing Company: Raw Materials Inventory (1-12-2014)Rs. 40,000Raw Material Purchases190,000Raw Materials Returns9,000Carriage Inwards15,000Direct Labor255,000Indirect Lab

Solution: Cost of inventory in process = opening inventory + purchase + direct expenses - closing…

Answered: he following balances have been taken…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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he following balances have been taken from the general ledger for Pak Fan Manufacturing Company:

Raw Materials Inventory (1-12-2014)	Rs. 40,000
Raw Material Purchases	190,000
Raw Materials Returns	9,000
Carriage Inwards	15,000
Direct Labor	255,000
Indirect Labor	60,000
Depreciation (Machinery)	30,000
Hear, Light and Power	25,000
Factory Rent and Taxes	31,000
Factory Repairs Expense	19,000
Foreman ‘s Salary	25,000
Raw Material (31-12-2014)	58,000
Work in Process (1-12-2014	63,000

The foreman estimates that Rs. 32,000 of Raw Materials and Rs. 25,000 of Direct Labor are to be allocated to the unfinished goods in process on 31-12-2014.

Compute the cost of December 31, 2014 inventory of Goods in Process.

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