Class Practice

1. The Boulder Company had the following data for the year 2015
Inventories 1-Jan-15 31-Dec-15
Raw-material Rs. 60,000 Rs.80,000
Work in Process 1,40,000 2,00,000
Finished goods 3,80,000 3,60,000
Additional data:
Sales Revenue 21,80,000
Raw-material Purchases 4,60,000
Direct Labour costs 2,40,000
Manufacturing Overhead 2,80,000
Selling expenses 3,20,000
Administrative expenses 1,90,000
Research & Development expenses 40,000
Calculate the following for the year 2015:
a) Prime Cost
b) Cost of Goods Manufactured
c) Cost Of Goods Sold
d) Total period costs
e) Conversion cost
2-42 Shaheen Plastics P Limited selected data for the month of August related to current year are
presented below (Rs in millions)
Particulars Amount in Rs (Millions)
Beginning Work in Progress 2000
Beginning Direct Material Inventory 900
Direct Material Purchased 3600
Direct Material Used 3750
Variable Manufacturing Overhead 2500
Total Manufacturing Overhead 4800
Total Manufacturing Costs 16000 =(3750+4800+DL)
Cost of Goods Manufactured 16500 =MFG+OPWIP-CLWIP)
Cost of Goods Sold 17000
Ending Inventory of Finished Goods 1250
Calculate the following costs:
1. Direct Material Inventory on 31st August (ending inventory) Rs 750
2. Fixed Manufacturing Overhead cost of August (4800-2500 =2300)
3. Direct Manufacturing Labor Costs for August Rs 7450
4. Work in Progress inventory as on 31st August (Ending)=Rs 18000-16500 =Rs 1500
5. Goods Available for sale in August = FG Inventory at beginning + Goods Manufactured