MGT402 Assignment no 2 Due Date 22-01-2013

SEMESTER FALL 2012

COST AND MANAGEMENT ACCOUNTING (MGT402)

ASSIGNMENT NO. 02
DUE DATE: 22nd JANUARY 2013
MARKS: 30

TOPIC TO BE TESTED:

• Process costing
LEARNING OBJECTIVES:
• To develop an understanding for the preparation of “Cost of Production report”.

ASSIGNMENT QUESTION:
Alec Ltd. is one of the largest electronic equipment producers in the country. It
undertakes the work according to the consumer tastes and preferences. Following data is
for the December 2012.
Cost from department - 1 Rs. 10,000
Cost added in department - 2:
Material Rs. 40,000
Labor Rs. 50,400
FOH Rs. 67,200

The quantity schedule shows that 20,000 units were received during the month from the
department - 1 and 12,000 units transferred to finished goods storeroom. 8,000 units in
process were 100% complete as to material and 60 % complete as to the conversion cost.
By using the above information, you are required to prepare/calculate:
1. Quantity schedule. 02 Marks
2. Cost accumulated in the department. 06 Marks
3. Accounting treatment / Cost apportionment. 09 Marks
4. Equivalent production units for material & conversion cost. 03 Marks
5. Per unit cost. 07 Marks

(NOTE: 03 MARKS FOR GOOD FORMATTING AND PRESENTATION)

IMPORTANT:
24 hours extra / grace period after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.
IMPORTANT INSTRUCTIONS/ SOLUTION GUIDELINES/ SPECIAL INSTRUCTIONS
• Take help from internet for collecting the information.
• Carefully watch Lecture # 19 to 26 and consult the relevant material from handouts along with recommended/reference books books.
• Attempt the assignment by yourself and it will be entertained positively.
OTHER IMPORTANT INSTRUCTIONS:
DEADLINE:
• Make sure to upload the solution file before the due date on VULMS.
• Any submission made via email after the due date will not be accepted.
FORMATTING GUIDELINES:
• Use the font style “Times New Roman” or “Arial” and font size “12”.
• It is advised to compose your document in MS-Word format.
• You may also compose your assignment in Open Office format.
• Use black and blue font colors only.
REFERENCING GUIDELINES:
• Use APA style for referencing and citation. For guidance search “APA reference style” in Google and read various website containing
information for better understanding or visit
http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html
RULES FOR MARKING
Please note that your assignment will not be graded or graded as Zero (0), if:
• It is submitted after the due date.
• The file you uploaded does not open or is corrupt.
• It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF etc.
• It is cheated or copied from other students, internet, books, journals etc.
Note related to load shedding: Please be proactive
Dear students!
As you know that Post Mid-Term semester activities have been started and load shedding problem is also prevailing in our country now a days. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs.

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IDEA SOLUTION

My answers are:

Quantity schedule. 20,000

Cost accumulated in the department. Rs.167,000

Accounting treatment / Cost apportionment. 319,124

Equivalent production units for material & conversion cost.20000,20000,16800,16800 respectively

Per unit cost. 15.76, 2, 3 , 4 respectively n sum is 24.76

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1- QUANTITY SHEDULE
Units transferd 12000
in process 8000

2- cost accumulated
deprtmnt 1 10000
material 40000
labor 50400
FOH 67200 167600
3- accounting treatment
12000 x 9.5 114000
units in process
from dep 1 8000 x .5 4000
matrl 8000 x 2 16000
labor 4800 x 3 14400
foh 4800 x 4 19200
4- Equivalent units
material 12000 + 8000 20000
conversion cost 12000 + 4800 16800
unit cost
previous deprtmnt 10000/20000 0.5
material 40000/20000 2
labor 50400/16800 3
foh 67200/16800 4
per unit cost total 9.5

please share ur solution if this is incorrect.

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