China Toys Manufacturing Company Ltd.,
Cost of Goods Manufactured and Sold Statement.
For the period ended on 31st Dec, 2009
Particulars | Rs. | Rs. |
Direct Material | ||
Opening Material | 8000 | |
+Material Purchased | +90000 | |
Material Available for use | 98000 | |
-Closing Inventory | -43000 | |
Material Consumed | 55000 | |
+Direct Labour | +35000 | |
Prime Cost 60% of C.G.M (W-3) | 90000 | |
+FOH 30% of the Conversion (W-2) | +15000 | |
Total Factory Cost | 105000 | |
+Opening Work in Process | +70000 | |
Cost of Goods to be Manufactured | 175000 | |
-Closing Work in Process | -25000 | |
Cost of Goods Manufactured | 150000 | |
+Opening Finished Goods | +50000 | |
Cost of Goods Available for | 200000 | |
-Closing Finished Goods | -48800 | |
Cost of Goods Sold (W-1) | 151200 |
China Toys Manufacturing Company Ltd.,
Income Statement.
For the period ended on 31st Dec, 2009 Particulars | Rs. | Rs. |
218800 | ||
-Sales Return | -28000 | |
Net | 216000 | |
-Cost of Goods Sold | -151200 | |
Gross Profit | 64800 | |
-Selling and Administration Expenses | ||
Selling Expenses 5% of Net | 10800 | |
-Administration Expenses 8% of Net | 17280 | 28080 |
Operating Profit | 36720 | |
-Financial Expenses | -600 | |
Net Profit | 36120 |
(W-1)
Net Sale
Net Sale
216000= Cost of Goods Sold+30% of Sale
216000= Cost of Goods Sold+30% of 216000
216000= Cost of Goods Sold+64800
216000-64800 = Cost of Goods Sold
151200 = Cost of Goods Sold
(W-2) Reverse Calculation:-
Conversion Cost = Direct Labour + Factory Over Head
Conversion Cost =70%+30%
Conversion Cost =70%35000+30% of Conversion Cost
Total Conversion Cost = 35000*100/70
Total Conversion Cost 35000*100/70
Total Conversion Cost = 50000
Factory Overhead = 30%of 50000
Factory Overhead = 50000*30/100
Factory Overhead = 15000
Working.3:
Ending Finished Goods Inventory=?
Ending Finished Goods Inventory=
Cost of goods available for sale-Cost of Goods Sold
Ending Finished Goods Inventory= Rs.200,000-Rs.151,200
Ending Finished Goods Inventory=Rs.48800
Working.4:
Cost of Goods Manufactured=?
Cost of Goods Manufactured= Cost of goods available for sale-Opening Finished Goods Inventory
Cost of Goods Manufactured= Rs.200,000-Rs.50,000
Cost of Goods Manufactured= Rs.150,000
Working.5:
Prime Cost=?
In the given statement of Question there is Prime cost (60% of Cost of Goods Manufactured)
SO,
Prime Cost= Rs.150,000*60%
Prime Cost= Rs. 90,000
Working.6:
Total Current Factory Cost=?
Total Current Factory Cost=
Prime Cost +Factory Over Head Cost
Total Current Factory Cost= Rs.90,000+Rs.15,000
Total Current Factory Cost= Rs.105,000
Working.7:
Cost Of Goods to be Manufactured=?
Cost Of Goods to be Manufactured=
Total Current Factory Cost+ Opening Work in Process Inventory
Cost Of Goods to be Manufactured= Rs.105,000+Rs.70,000
Cost Of Goods to be Manufactured= Rs.175,000
Working.8:
Ending Work in Process Inventory=?
Ending Work in Process Inventory=
Cost Of Goods to be Manufactured-Cost Of Goods Manufactured
Ending Work in Process Inventory=Rs.175000-Rs.150,000
Ending Work in Process Inventory= Rs. 25,000
Working.9:
Direct Material used=?
Direct Material used= Prime Cost - Direct Labor
Direct Material used= Rs.90,000 – Rs.35,000
Direct Material used= Rs.55,000
Working.10:
Material Closing Inventory=?
Material Closing Inventory=
Material available for use – Total material used
Material Closing Inventory= Rs.98,000 – Rs55,00
Material Closing Inventory= Rs.43,000
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