Process Cost SystemQ.1.

Mansoor Industries Limited uses a

process cost system of three processes, the following data relates to its process-
01.Beginning Inventory .................................... Rs. 1,60,000Raw Material
Uses ...................................... Rs. 2,50,000Direct LabourCost
Used .............................. Rs. 3,68,000Factory Overhead Cost
Applied ..................... Rs. 2,76,000The data extracted from a quantity schedule
relating to the above processes are as follows:Units in Process
Beginning .................................... 1,30,000(100% completed as to Material 70%
asconversion cost).Units placed in production .....................................
4,75,000Units Completed .................................................. 4,00,000Units still in
process at the end at the end 90% complete as to Material and 50% complete as
to conversion cost.Required: Compute the Equivalent Production units, the unit
cost, the total cost of unit completed and the total cost of units in process at
end.Q.2.The following information pertains to the good in the process No. 3 for
November 2005: Cost of goods in process inventory, November 1 (4000 units
100% complete as to materials and 75% complete as to conversion cost) Rs.
4,87,000.Cost of 14,000 units transferred in form process No. 2 Rs.
7,00,000Manufacturing costs added in process No. 3Direct
Materials ............................ Rs. 2,80,000Direct Labour ............................... Rs.
1,25,000Factory Overhead ......................... Rs. 3,75,000On November 30, 5000
units are still process No. 3, which are 100% complete as to materials and 50%
complete as to conversion cost.Required:i. Equivalent units of productionii. Cost
per unit
iii. Cost of unit transferred to finished goodsiv. Cost of units in process on
November 30Q.3. The following information’s was taken from the records of
Faisal Manufacturing Co. for the month of January 2006.1. Cost of units in
process on Jan 01, 2006 Rs. 30,000.2. Cost of raw material used Rs. 81,400.3.
Direct Labour Cost incurred Rs. 64,800.4. Factory Overhead cost incurred Rs.
43,200.The data extracted from the production report relating to above process is
as for follows.1. Units in process at end of January 2006. 3,000 Units (60%
complete as to Material and 80% complete as to conversion cost)2. Units placed
in production during the month. 13,000 Units.3. Units in process on January 01,
2006. 5,000 Units (40% complete as to material and 60% complete as to
conversion cost)Required:i. Equivalent production during the month.ii. Unit Cost.
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iii. Cost of units completediv. Cost of ending inventory of Goods in Process.v.
Journal entries to records cost allocated to production and cost of goods
completed during the month.Q.4. The following information pertains to the goods
in Process No. 3 for the month of December 2007. The Company applies FIFO
method for inventory valuationGood in Process Inventory December 01, 2007,
40000 units75% complete, cost of Rs. 3,87,000.Cost 140000 units transferred in
from Process No. 2, during December Rs. 8,40,000.Cost added in Process No. 3
during December, Direct Material Rs. 2,75,000, Direct Labour Rs. 82,500 and
Factory Overhead Rs. 1,37,500.On December 31, 50,000 units are still in
Process No. 3 which are 75% complete as to materials and 20% complete as to
conversion cost.Required:Computei. Number of units completedii. Equivalent
units of productioniii. Cost per unitiv. Cost of units transferred to finished goods
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