ASIGNMENT NO: 1

Name: Enrollment: Class: Course: Topic:

Mohammad Abdullah 2010-E-037 MBA (4th quarter) Managerial Accounting. Statement of cost showing various elements of cost. Statement of profit.

Submitted To: Submission Date:

Mst: Noureen Iqbal Khan 02-11-2011

INSTITUTE OF MANAGEMENT SCIENCES UNIVERSITY OF BALUSHISTAN QUATTA

Statement of Cost & the Statement of Profit Solution to Given Illustration.

Solution To Given Illustration:

02/11/2011

The Gogetter Company Cost Sheet th For The Month Ended September 30 , 1994

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Opening raw material Purchases during the year Sub total Purchases return Net purchases Freight incurred on materials Cost of raw material available for use Ending inventory raw material Cost of raw material consumed Direct labor Accrued expanse on direct labor Prime cost Factory overheads: Indirect labor Factory supervision Repair and up keeping factory Heat light and power Rates and taxes Miscellaneous factory expanses Indirect labor accrued expanse Depreciation plant and machinery Depreciation building to factory Total factory overhead Manufacturing cost for the month WIP Opening WIP Total factory cost to account for Ending WIP Cost of goods manufactured during month Finish goods Cost of finished goods opening inventory Cost of goods available for sale Ending inventory finished goods Cost of goods sold Administrative overhead: Depreciation office appliances Depreciation office building Heat light and power Rates and taxes Office salaries & expanses Total administrative overhead Cost of production

Rs 140,000.00 Rs 320,000.00 Rs 460,000.00 Rs 4,800.00 Rs 315,200.00 Rs 16,000.00 Rs 479,200.00 Rs 180,000.00 Rs 299,200.00 Rs 160,000.00 Rs 8,000.00 Rs 459,200.00

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W:03 W:04

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18,000.00 10,000.00 14,000.00 52,000.00 4,200.00 18,700.00 1,200.00 46,050.00 6,400.00 Rs 170,550.00 Rs 629,750.00 Rs 200,000.00 Rs 829,750.00 Rs 192,000.00 Rs 637,750.00 Rs 80,000.00 Rs 717,750.00 Rs 115,000.00 Rs 602,750.00

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W:05 W:06 W:07 W:08

Rs Rs Rs Rs Rs

870.00 800.00 6,500.00 2,100.00 8,600.00 Rs 18,870.00 Rs 621,620.00

Prepared By Mohammad Abdullah Shah Bukhari Institute Of Management Sciences University Of Balochistan Quetta

Statement of Cost & the Statement of Profit Solution to Given Illustration.

Brought Forwarded Add Selling & distribution overheads: Depreciation building Heat light and power Sales commission Sales traveling Sales promotion Salaries and expanse of distribution department Total selling& distribution overhead Cost of sales W:09 W:10 Rs Rs Rs Rs Rs Rs 800.00 6,500.00 33,600.00 11,000.00 22,500.00 18,000.00

02/11/2011

Rs 92,400.00 Rs 714,020.00

Workings of Cost Sheet: W: 01. Heat light and power Factory. W: 02. Rates and taxes factory. W: 03. Depreciation plant and machinery. W: 04. Depreciation factory building. W: 05. Depreciation office appliances. W: 06. Depreciation office building. W: 07. Heat light and power office. W: 08. Rates and taxes office. W: 09. Depreciation building selling department. W: 10. Heat light and power selling department. 8/10 x 65000 = 52000 6300/3 x 2 = 4200 10% x 460500 = 46050 200,000 x 4% = 8/10 x 8000 = 6400 5% x 17400 = 870 200,000 x 4% = 1/10 x 8000 = 800 1/10 x 65000 = 6500 6300/3 x 1 = 2100 200,000 x 4% = 1/10 x 8000 = 800 1/10 x 65000 = 6500

The Gogetter Company Statement of Profit th For The Month Ended September 30 , 1994

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Sales Sale return and rebate Net sales Cost of goods sold Gross profit Selling and administrative overheads Profit before interest Interest on borrowed fund Accrued interest on borrowed fund Total interest on borrowed fund Net profit

Rs 768,000.00 Rs 14,000.00 Rs Rs Rs Rs Rs Rs Rs 2,000.00 2,000.00 Rs Rs 4,000.00 35,980.00 754,000.00 602,750.00 151,250.00 111,270.00 39,980.00

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Prepared By Mohammad Abdullah Shah Bukhari Institute Of Management Sciences University Of Balochistan Quetta