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Cost Accounting Assignment 01 Updated

This document provides instructions and formulas for an assignment on cost accounting. Students are asked to solve 4 problems using the formulas provided to calculate items like prime cost, factory overhead, conversion cost, and raw materials consumed. The problems ask students to compute these items given various costs for direct materials, direct labor, and indirect expenses. Students must show all work and submit the assignment with their name and registration number by February 5th, 2020.

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Naeem Khan
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145 views

Cost Accounting Assignment 01 Updated

This document provides instructions and formulas for an assignment on cost accounting. Students are asked to solve 4 problems using the formulas provided to calculate items like prime cost, factory overhead, conversion cost, and raw materials consumed. The problems ask students to compute these items given various costs for direct materials, direct labor, and indirect expenses. Students must show all work and submit the assignment with their name and registration number by February 5th, 2020.

Uploaded by

Naeem Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Cost Accounting

Assignment # 01

Instructions:
 Solve the following Problems which are given below
 You have to try to solve all questions no marks will be deducted for any wrong answer
 Assignment should be hand written and having cover page in which your name and
registration number is clearly mentioned.
 Formulas which are used in this assignment are given below
 Deadline: 5TH February 2020

BASIC FORMULAS
Prime Cost = Direct material + Direct labour

Conversion Cost = Direct labour + Factory overhead

Factory Overhead = Indirect material + Indirect labour+ Indirect expenses Manufacturing

Cost / Factory Cost = Direct material + Direct labour + Factory overhead

Direct Material Used = Raw material (beginning) + Net purchases of raw material – Raw
material (ending)

Net Purchases of Raw Material =Purchases of raw material + Transportation in – Purchase


discount - Purchase return & allowance

SCHEDULE FOR RAW MATERIAL CONSUMED OR DIRECT MATERIAL

Opening Raw Material xxx


Add: Raw material Purchases xxxx
Less: Purchases - Return (xxx)
Purchases - Discount (xxx)
Add: Transportation- In xxxx
Total Purchases of Raw Material xxxxx
Raw Material Available for Consumption xxxxx
Less: Raw Material- Ending (xxxx)
Raw Material Consumed Xxxxx
Cost & Management Accounting

Problems

Q.1
Prime Cost = Rs. 600,000 which is 75% of Factory
Cost Direct Labour = 250,000
Factory
Compute: i) Overhead ii) Conversion Cost
Hint :
600,000/0.75 = 800,000 which Is Factory cost
Q.2
Prime Cost = Rs. 540,000 which is 60% of Factory
Cost Direct Labour = 240,000
Factory
Compute: i) Overhead ii) Conversion Cost

Q3
Material =Rs. 120,000 [ 15 % Indirect]
Labour = 150,000 [75% Direct ]
Rent = 25,000 [40% Office ]
Fuel & Power = 40,000 [ 100% Factory ]
Utilities Expense = 8,000 [25% Factory ]
Supervisor Salaries = 1,800 [100% Factory ]
Depreciation = 45,000 [ 15 % Furniture, 25% Factory Building, 15% office

Compute: i) Prime Cost ii) Factory Over Head


iii) Factory Cost iv) Conversion Cost

Q.4. Raw Material – Consumed Rs. 60,000


Raw Material - Return 4,000
Raw Material - opening 15,000 Raw Material - ending 80% of Opening
Find Raw Material Purchased?

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