Fall Term 2021 Assignment 1

Date of Assignment: October 10, 2021

0 Date of Submission: October 15, 2021
Student Name: Tooba__I.D:16116 _________

Code: ACC – 251 Class: _BBA 4A_

Course: Cost Accounting Marks: 10 Marks
Instructor: Sanam Iqbal

Instructions:
1. Assignment should be handwritten

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Question 1: - The following is the trial balance of Falcon Manufacturing Company as at September 30,
2017
Dr. Rs. Cr. Rs. Dr. Rs. Cr. Rs.
Cash 30, 350 Accrued Dividends 11, 000
Acc Receivables (net) 28, 150 Capital Stock at par value 90,000
Dir Material Inv – Oct 01 9, 650 Paid-in-capital 25, 000
Work-in-process Oct 01 6, 900 Re Earnings – Oct 01 20, 350
Fin Goods Inv Oct 01 3, 750 Sales 391, 200
Prepaid Expenses 1, 600 Sales Returns 2, 850
Factory Equipment 131,500 Purchases of Material 93, 100
Acc Dep – Fac Equip 31, 400 Direct Labor 119, 700
Selling Equipment 71, 350 Factory Overhead 60, 750
Acc Dep – Selling Equip 23, 700 Gen & Admin Expense 32, 050
Patents 19, 100 Income Tax Expense 23, 272
Accounts Payable 15, 422
Salary Payable 26, 000 634, 072 634, 072

The inventories as at September 30, 2017 are as follows:

Direct Material Inventory Rs. 9, 020 Work-in-process Inventory Rs. 5, 250
Finished goods Inventory 2, 250

Instructions: - Prepare the following external financial statements

a. Cost of Goods Manufactured Statement
b. Income Statement
c. Statement of Retained Earnings
Fall Term 2021 Assignment 1
Fall Term 2021 Assignment 1
 Fall Term 2021 Assignment 1

Question 2: Determine the missing amounts in each of the following independent cases.

Case A Case B Case C

Sales ? ? $240,000
Beginning inventory, raw material ? $ 60,000 7,500
Ending inventory, raw material $ 180,000 ? 15,000
Purchases of raw material 200,000 255,000 ?
Direct material used 140,000 285,000 ?
Direct labor ? 300,000 62,500
Manufacturing overhead 500,000 ? 80,000
Total manufacturing costs 1,040,000 1,035,000 170,000
Beginning inventory, work in process 70,000 60,000 ?
Ending inventory, work in process ? 105,000 2,500
Cost of goods manufactured 1,050,000 ? 175,000
Beginning inventory, finished goods 100,000 120,000 ?
Cost of goods available for sale ? ? 185,000
Ending inventory, finished goods ? ? 12,500
Cost of goods sold 1,090,000 990,000 ?
Gross margin 510,000 510,000 ?
Selling and administrative expenses ? 225,000 ?
Income before taxes 300,000 ? 45,000
Income tax expense 80,000 135,000 ?
Net income ? ? 27,500
 Fall Term 2021 Assignment 1

Case A Case B Case C

Sales 1600000 1500000 $240,000
Beginning inventory, raw material 120000 $ 60,000 7,500
Ending inventory, raw material $ 180,000 30000 15,000
Purchases of raw material 200,000 255,000 35000
Direct material used 140,000 285,000 27500
Direct labor 400000 300,000 62,500
Manufacturing overhead 500,000 450000 80,000
Total manufacturing costs 1,040,000 1,035,000 170,000
Beginning inventory, work in process 70,000 60,000 7500
Ending inventory, work in process 60000 105,000 2,500
Cost of goods manufactured 1,050,000 990000 175,000
Beginning inventory, finished goods 100,000 120,000 10000
Cost of goods available for sale 1150000 1110000 185,000
Ending inventory, finished goods 60000 120000 12,500
Cost of goods sold 1,090,000 990,000 172500
Gross margin 510,000 510,000 67500
Selling and administrative expenses 210000 225,000 22500
Income before taxes 300,000 285000 45,000
Income tax expense 80,000 135,000 17500
Net income 220000 150000 27,500
Fall Term 2021 Assignment 1