Question

The following information has been taken from the job order cost system, used by SALEEM CORPORATION:

Job No.

Balance March 1

Production Cost in March

15

Rs. 150,000

---

16

170,000

---

17

50,000

Rs. 130,000

18

70,000

150,000

19

----

240,000

20

----

150,000

21

----

90,000

During March Job No. 17, 18 & 19 were completed, and job No. 15, 16 and 17 were sold on account at 40% above cost.

REQUIRED:

i) Cost of finished goods inventory – beginning

ii) Cost of goods in process inventory – beginning

iii) Cost of finished goods inventory – ending

iv) Cost of goods in process inventory – ending

v) Cost of goods manufactured

vi) Cost of Goods sold

vii) Sales

Answer 1

i) Details Amount Rs

Cost of Job No.15 150,000

Cost of Job No.16 170,000

Cost of finished goods inventory - beginning 320,000

ii) Details Amount Rs

Cost of Job No.17 50,000

Cost of Job No.18 70,000

Cost of goods in process inventory - beginning 120,000

iii) Details Amount Rs

Cost of Job No.18 220,000 (70000+150000)

Cost of Job No.19 240,000

Cost of finished goods inventory - ending 460,000

iv) Amount Rs

Cost of Job No.20 150,000

Cost of Job No.21 90,000

Cost of goods in process inventory - ending 240,000

v) Amount Rs

Total Production Cost incurred in March 760,000

(130000+150000+240000+150000+90000)

Add: Cost of goods in process inventory - beginning 120,000

Less: Cost of goods in process inventory - ending 240,000

Cost of goods manufactured 640,000

vi) Amount Rs

Cost of goods manufactured 640,000

Add: Cost of finished goods inventory - beginning 320,000

Less: Cost of finished goods inventory - ending 460,000

Cost of Goods sold 500,000

vii) Sales = Cost of goods sold * 140%

Sales = 500000*140%

Sales = Rs. 700,000