Question:
The Imran Manufacturing Company produces a single product which passes
through three departments A, B and C. The data related to the production
for the month of June, 2006 is as under:
Cost Incurred by Departments
Material Cost
Labor Cost
Factory Over Head Cost
Units Started in Process
Units received from preceding
department
Units transferred to next department
Units transferred to finished goods store
room
Units still in Process
Material 100%, Conversion Cost 75%
Conversion cost 25% completed
Conversion cost 40% completed
Departments
A
B
C
(Rs.)
(Rs.)
(Rs.)
10,000
9,000
3,625
2,320
4,500
2,175
1,740
1,000
800
–
800
700
700
–
200
–
100
–
500
200
Required:
Prepare the Cost of production report for the month of June, 2006 for
Department A.
Note:
Please format the statement correctly. The allocation of the marks will be as
follows:
Statement Head
Quantity Schedule
Cost charged to the department (Total Cost and Unit
Cost)
Cost accounted for as follows
Additional computation
Total
1
2
4
5
3
15
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