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Workbook
[email protected] CGS (Unsolved)
98
Unit 9
CGS # 9.1: Test your understanding
1. Ascertain Cost of Goods Sold from the following figures: Opening Inventory / Stock Rs. 3,700 Purchases 20,800 Closing Inventory / Stock 2,500
CGS = OI + P - CI
2. Ascertain Cost of Goods Sold from the following figures: Opening Stock Rs. 8,500 Purchases 30,700 Direct Expenses 4,800 Indirect Expenses 5,200 Closing Inventory 9,000
CGS = OS + P + DE - CI
3. Ascertain Purchases from the following figures: Cost of Goods Sold Rs. 80,700 Opening Stock 5,800 Closing Stock 6,000
Purchases = CGS – OS + CS
4. Calculate Gross Profit from the following figures: Cost of Goods Sold Rs. 70,800 Sales 130,200
GP = Sales - CGS
5. Ascertain Gross Profit from the following figures: Opening Inventory Rs. 5,570 Purchases 13,816 Sales 15,284 Purchase Return 390 Return Inward 524 Closing Stock 8,880
GP = Net Sales + CS – OI – Net Purchases
6. From the following information extract Gross Profit and Net Profit: Beginning Inventory Rs. 2,400 Carriage in Rs. 524 Purchases 15,205 Wages 2,800 Sales 20,860 Wages Outstanding 96 Return Outward 185 Loss by fire 1,000 Return Inward 860 Indirect Expenses 200 Closing Inventory 3,840 GP = Net Sales + CI – BI – Net Purchase - Direct Expenses NP = GP – Indirect (other than Direct Expenses)
Workbook
[email protected] CGS (Unsolved)
99
Unit 9
CGS # 9.2: Test your understanding
1. Ascertain Cost of Goods Sold from the following figures:
Opening Stock Rs. 15,000
Purchases 5,000
Closing Stock 7,000
Cost of Goods Sold
2. Ascertain Gross Profit / Loss form the following figures:
Opening Inventory Rs. 12,000
Net Purchases 7,500
Sales 14,000
Closing Stock 1,500
Return Inward 2,500
Gross Loss
3. Ascertain Purchases from the following figures:
Cost of Sales Rs. 90,000
Beginning Inventory 15,000
Ending Inventory 7,000
Purchases
4. From the following information extract Gross Profit and Net Profit:
Opening Inventory Rs. 3,000
Purchases 14,000
Sales 22,000
Closing Inventory 5,500
Sales Return 1,500
Wages and Salaries 500
Financial Charges 1,500
Carriage Inward 150
Salaries Outstanding 400
Carriage Outward 100
Gross Profit
Net Profit
Workbook
[email protected] CGS (Unsolved)
100
Unit 9
CGS # 9.3: Test your understanding
1. Ascertain Cost of Goods Sold from the following figures:
Opening Stock Rs. 17,000
Purchases 4,000
Closing Stock 2,500
Cost of Goods Sold
2. Ascertain Gross Profit / Loss form the following figures:
Opening Inventory Rs. 8,000
Net Purchases 9,500
Sales 27,000
Closing Stock 5,000
Return Inward 4,500
Gross Profit
3. Ascertain Purchases from the following figures:
Cost of Sales Rs. 110,000
Beginning Inventory 45,000
Ending Inventory 26,000
Purchases
4. From the following information extract Gross Profit and Net Profit:
Opening Inventory Rs. 5,500
Purchases 7,000
Sales 33,000
Closing Inventory 7,500
Sales Return 2,000
Wages and Salaries 1,500
Financial Charges 2,500
Carriage Inward 150
Wages Outstanding 400
Carriage Outward 100
Gross Profit
Net Profit
Workbook
[email protected] CGS (Unsolved)
101
Unit 9
CGS # 9.4: The following are the figures relating to the YYY Commodity Production for the month of March, 2010.
Description Amount Description Amount Stock on 1.03.2010_ Raw Material Rs. 75,000 Stock on 31.03.2010_ Raw Material Rs. 50,000 Factory overheads 8,000 Sales 270,000 Purchases of Raw Material 100,000 Wages on Purchases 5,000 Stock on 1.03.2010_ Finished Goods 48,000 Stock on 31.03.2010_ Finished Goods 25,000 Direct Labor 12,000 Office & Admin Overhead 3,000 Return inward 10,000 Marketing Expenses 15,000 Work in process on 1.03.2010 5,000 Work in process on 31.03.2010 3,000
Requirement: Prepare statement showing Prime Cost; Conversion Cost; Total Cost; Cost of Goods Manufactured; Cost of
Goods Sold. Calculate Gross Profit; Net Profit and per unit cost by assuming that 38,000 units were produced during March.
YYY Commodity Production
Cost of Goods Sold Statement For the month ended March, 2010
Gross Profit =
Net Profit =
Per Unit Cost =
Conversion Cost =
Workbook
[email protected] CGS (Unsolved)
102
Unit 9
CGS # 9.5: These data relate to Zakar Co.'s July 2009 operations:
Materials, Beginning ………………..…… Rs. 7,000 Materials, Ending ………………..……… Rs. 9,000
WIP, Beginning ……………………………. 7,500 WIP, Ending ………………………………. 3,500
Finished goods, Beginning ………………… 10,000 Finished goods, Ending …………………… 12,000
Materials used ……………………………… 46,800 Direct Expenses ……………………….…… 400
Selling and general expenses ………………. 6,700 Direct Labour ……………………………… 8,000
Factory overhead is applied at the rate of 80% of direct labor cost.
Requirement:
Cost of materials purchased, Cost of goods manufactured, Cost of goods sold and Conversion Cost.
Zakar Company
Cost of Goods Sold Statement
For the Ended July, 2009
Cost of Goods Sold Rs. 63,200
Conversion Cost =
Workbook
[email protected] CGS (Unsolved)
103
Unit 9
CGS # 9.6: Following are data Extracted from Star Pvt. Ltd. at the end of December 31st, 2008.
Sales ………………………… Rs. 14,000,500 Sales Return ………………………….. Rs. 25,200 Purchases (Net) ……………… 2,400,000 Transportation inward ………………... 32,000 Direct Labour ……………….. 3,204,000 FOH (Total)…………………………… 1,885,600 Sales Salaries ……………….. 200,000 Advertising Expense ………………….. 155,000 Delivery Expense …………… 65,000
During the year 25,000 units were completed.
Inventories December, 2008 January, 2008
Finished Goods ……………………………… Rs. 467,400 ………………………………. Rs. 620,000 Work in Process ……………………………... 136,800 ………………………………. 129,800 Materials …………………………………….. 196,000 ………………………………. 176,000 Requirements:
(1) Total Factory Cost (2) Cost of Goods Manufactured (3) Cost of Goods Sold (4) Gross Profit and Net Profit (5) Per Unit Cost of Goods Manufactured
Star Pvt. Ltd Cost of Goods Sold Statement
For the Ended December, 2008
Cost of Goods Manufactured 7,494,600
Gross Profit =
Net Profit =
Per unit Cost of goods manufactured =
Workbook
[email protected] CGS (Unsolved)
104
Unit 9
CGS # 9.7: Following Data related to XYZ Manufacturing at the end of April, 2010.
INVENTORIES
Ending Beginning
Finished Goods ……………………………………….. 95,000 ……………………………….. ? Work in Process ………………………………………. ? ………………………………. 70,000 Direct Material ……………………………………….. 95,000 …………………………….…. 90,000 Cost incurred during the period
Cost of Goods Manufactured ……………………………..…. 574,000 Total Manufacturing Cost …………………………………… 584,000 Factory Overhead …………………………………………….. 167,000 Direct Material Used …………………………………………. 193,000
During the year 15,000 units were completed.
Requirements:
(a) Prime Cost (b) Cost of Goods Sold (c) Per Unit Cost (d) Conversion Cost
XYZ Manufacturing Cost of Goods Sold Statement
For the Ended April, 2010
Per unit Cost of goods manufactured =
Conversion Cost = Direct Labor + FOH =
Workbook
[email protected] CGS (Unsolved)
105
Unit 9
CGS # 9.8: Account Department of the ABC Co. provides the following data at end of June 2009, you are required to prepare Cost of Goods Manufactured; Cost of Goods Sold; find out Gross Profit / Loss & Net profit / Loss and Per unit Manufacturing Cost at the Year ended May 30th, 2009, assuming that Net Sales of Rs. 72,000, Marketing Expense 5%, Advertising Expense 1 % and Other Expense 3% of Net Sales; Net Purchases Rs. 36,000 and Direct Expenses are 1 % of Net Purchases; FOH 2/3 of Direct Labor and Direct Labor cost is Rs. 15,000. Units are produced during the period was 5,000. Beginning Inventories Rs Ending Inventories Rs
Finished Goods ……………………………………. 7,000 ……………………………………. 10,200 Work in Process …………………………………… 8,000 …………………………………… 15,000 Material ……………………………………………. 8,000 ……………………………………. 8,500
XYZ Manufacturing
Cost of Goods Sold Statement
For the Ended June, 2009
Cost of Goods Sold Rs. 50,660
Gross Profit =
Net Profit =
Per Unit Manufacturing Cost =
Workbook
[email protected] CGS (Unsolved)
106
Unit 9
CGS # 9.9: Following data has been extracted from the books of City Company; you are required to prepare Cost of Goods
Manufactured, Cost of Goods Sold Statement, Gross Profit / Loss and Net Profit / Loss at the end of September 30th, 2009.
Stock of Raw Material (Opening) 25,000 Electricity Expense 600 Freight Inward 8,500 Selling Expenses 6,000 Freight outward 6,000 Miscellaneous Expenses 14,000 Wages 18,000 Stock of Raw Material (Closing) 2,000 Sales 418,000 Stock of Finished Goods: FOH 26,000 Opening 30,000 Return inward 5,000 Closing 40,000 Return Outward 3,500 Provision for Doubtful Debts 8,500 Factory Fuel and Power 8,000 Depreciation 4,000 Work in Process (Opening) 7,000 Purchases of Raw Material 250,000 Work in Process (Closing) 4,000 Bank Interest Received 2,600 Repairs to Office building 4,650 Direct Labor Cost 16,000
City Company
Cost of Goods Sold Statement
For the Ended September, 2009
Prime Cost 320,000
Cost of Goods Manufactured 349,000
Workbook
[email protected] CGS (Unsolved)
107
Unit 9
Cost of Goods Sold Rs. 339,000
Gross Profit =
Net Profit / Loss =
CGS # 9.10: Following data has been extracted from the books of AAA Wood Company; you are required to prepare Cost of
Goods Sold Statement, Gross Profit / Loss and Net Profit / Loss at the end of June 30th, 2008.
Cash 810
Account Receivable 1,878
Allowance for doubtful accounts 90
Direct Material Inventory, July 01, 2007 375
Work-in-process, July 01, 2007 450
Finished goods, July 01, 2007 333
Carriage inward 54
Factory Equipments 5,880
Accumulated Depreciation _ Factory Equipment 1,695
Office Equipment 1,842
Accumulated Depreciation _ Office Equipment 738
Account Payable 1,113
Miscellaneous Expenses Payable 366
Capital 7,167
Net Sales 16,290
Net Purchases 3,201
Direct Labor 4,605
Factory Overheads 3,687
Selling Expenses 2,616
Administrative Expense 978
Income Tax 750
Total Rs. 27,459 Rs. 27,459
Inventory on June 30th, 2008 are
Direct Material Inventory Rs. 453; Work-in- Process Inventory Rs. 294 and Finished Goods Inventory Rs. 402
Workbook
[email protected] CGS (Unsolved)
108
Unit 9
AAA Wood Company
Cost of Goods Sold Statement
For the Ended June, 2008
Gross Profit =
Net Profit =