a.
Units manufactured during the period
Units sold 14,200
Add: Finished goods closing 200
Less: Finished goods opening (100)
Units manufactured 14,300
Income statement
For the period------------------
All amounts in Rs.
Total units Per unit
Sales 6,634,000 14200 467.18
Cost of goods sold 4,901,500 14200 345.18
Gross profit 1,732,500 14200 122.01
Administrative expense 461,000 14200 32.46
Selling expenses 516,000 14200 36.34
Net Income 755,500 14200 53.20
Cost of goods sold statement
XYZ Co.
Cost of goods sold statement
For the period------------------
All amounts in Rs.
Direct material inventory (Beginning) 268,000
Add: Direct material Purchased (Net) 1,946,700
Direct material available for use 2,214,700
Less: Direct material inventory (Closing) (167,000)
Direct material used 2,047,700
Add: Direct labor 2,125,800
Add: Factory overhead (Applied) 764,000
Total current manufacturing cost 4,937,500
Add: Work-in-process inventory (Beginning) -
Cost of goods available for manufacture 4,937,500
Less: Work-in-process inventory (closing) -
Total cost of goods manufactured 4,937,500 345.27972027972
Add: Finished goods Inventory (Beginning) 43,000
Cost of goods available for sale 4,980,500
Less: Finished goods inventory (closing) 79,000
Cost of goods sold (Normal) 4,901,500
Add: underapplied FOH
Cost of goods sold (actual)
Cost of goods sold statement
XYZ Co.
Cost of goods sold statement
For the period------------------
All amounts in Rs.
Direct material inventory (Beginning) 50,000
Add: Direct material Purchased (Net) 260,000
Direct material available for use 310,000
Less: Direct material inventory (Closing) (40,000)
Direct material used 270,000
Add: Direct labor 65,000
Add: Factory overhead (Applied) 340,000
Total current manufacturing cost 675,000
Add: Work-in-process inventory (Beginning) 48,000
Cost of goods available for manufacture 723,000
Less: Work-in-process inventory (closing) (33,000)
Total cost of goods manufactured 690,000
Add: Finished goods Inventory (Beginning) 30,000
Cost of goods available for sale 720,000
Less: Finished goods inventory (closing) 55,000
Cost of goods sold (Normal) 665,000
Add: underapplied FOH 10,000
Cost of goods sold (actual) 675,000
XYZ Co.
Income statement
For the period------------------
All amounts in Rs.
Sales 1,085,000
Cost of goods sold (675,000)
Gross profit 410,000
Administrative expense 160,000
Selling expenses 215,000
Net Income 35,000
Actual FOH Operating expense
Electricity bill 22,500 18,000 4,500
Insurance expired 6,000 4,500 1,500
Rent 75,000 52,500 22,500
Depreciation Factory 33,000 33,000 -
Depreciation of sales 4,500 - 4,500
Advertisng 81,500 - 81,500
Selling salaries 48,000 - 48,000
Total 108,000 162,500
FOH Applied:
Actual Machine hours 26,400
FOH per hour 5
Total FOH applied 132,000
Over applied 24,000
Closing of FOH variance:
WIP 30,000 0.18181818 4,363.64
FG 60,000 0.36363636 8,727.27
COGS 75,000 0.45454545 10,909.09
Total 165,000 24,000.00
Cost of goods sold statement
XYZ Co.
Cost of goods sold statement
For the period------------------
All amounts in Rs.
Direct material inventory (Beginning)
Add: Direct material Purchased (Net)
Direct material available for use
Less: Direct material inventory (Closing)
Direct material used
Add: Direct labor
Add: Factory overhead (Applied)
Total current manufacturing cost
Add: Work-in-process inventory (Beginning)
Cost of goods available for manufacture
Less: Work-in-process inventory (closing)
Total cost of goods manufactured
Add: Finished goods Inventory (Beginning)
Cost of goods available for sale
Less: Finished goods inventory (closing)
Cost of goods sold (Normal)
Add: underapplied FOH (24,000)
Cost of goods sold (actual)
