Solution:
Molding Department:
Quantity Schedule:
Units Put into process 18,200
Units completed and transferred to Assembly department 14,000
Still in process 3,500
Unit lost 700 18,200
Cost Charged by the department: Total Rs.
Direct material 210,000
Direct Labor 77,000
FOH 38,500
Total 325,500
Equivalent units produced:
Direct material 14,000+(3500x100%) 17,500
Direct labor & FOH 14,000+(3500x50%) 15,750
Unit cost: Rs.
Direct material 210,000/17,500 12.0000
Direct labor 77,000/15750 4.8889
FOH 38,500/15750 2.4444
Total unit cost 19.3333
Apportionment of cost:
Transferred to next department 14,000x19.3333 270,666
WIP inventory
Direct material 3500 x 12 42,000
Direct labor 3500 x 0.5 x 4.8889 8,556
FOH 3500 x 0.5 x 2.444 4278
325,500
Assembly Department:
Quantity Schedule:
Units received 14,000
Completed and transferred to next dept 11,000
still in process 2,200
Lost 800 14,000
Cost charged by the department:
Cost from preceding department 14,00 x 19.3333 270,666
Added by this department:
Material 2,200
Labour 45,000
FOH 33,000
350,866
Equivalent Units produced:
Material 11,000 + (2200x100%) +800 14,000
labor & FOH 11,000 + (2200x70%) +800 13,340
Unit Cost:
From preceding dept 19.3333
Material 2200/14,000 0.1571
Labor 45,000/13,340 3.3733
FOH 33,000/13,340 2.4738
Total unit cost 25.3375
Cost transferred to the next dept:
11,000 x 25.3375 278,713
Cost of units lost 800x25.3375 20,270
total cost transferred 298,983
Unit cost of the transferred units 298,983/11,000 = 27.1803
Apportionment of cost:
Transferred to next dept 298,983
WIP ending
Cost from preceding department 2,200 x 19.3333 42,533
Material 2,200 x 0.1571 345
labor 2,200 x .70 x 3.733 5,195
FOH 2,200 x .70 x 2.4738 3,810
350,866
Finishing Department:
Quantity Schedule:
Units received from preceding dept. 11,000
Units completed 9,000
still in process 1,500
Unit lost 500 11,000
Cost charged by the department:
Cost received from preceding dept 298,983
Cost added by the department:
Labor 52,000
FOH 41,000
391,983
Equivalent units produced:
Labor & FOH 9,000 + (1500x.30) + (500x.70) = 9800 Units
Unit cost:
cost from preceding dept 298,983/11000 27.1803
Labor 52000/9800 5.3061
FOH 41000/9800 4.1837
Total Unit Cost 36.6701
Apportionment of cost:
Cost of units transferred 9000x36.6701 330,031
WIP inventory:
cost charged in preceding dept 1500 x 27.1803 40,770
Labor 1500x.30x5.3061 2,388
FOH 1500x.30x4.1837 1,833
Abnormal Loss:
Cost charged in preceding dept 500x27.1803 13,590
Labor 500x.70x5.3061 1,857
FOH 500x.70x4.1837 1,464
391,983
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